Zurich-based catastrophe insurance data provider PERILS has raised its second insurance industry loss estimate for the Victorian bushfires that occurred from January 7 to 13, 2026, to $810 million.
These fires destroyed 900 buildings, including 330 homes, affected infrastructure, caused the loss of more than 20,000 livestock and, unfortunately, resulted in the death of one person.
The new estimate compares to the initial loss estimate of A$786 million released by PERILS on 26 February 2026, six weeks after the event end date.
As usual, the second estimate of insurance market losses from this event is based on loss data collected from affected insurers. This preliminary estimate covers property and motor hull operations under Australia’s PERILS coverage definition.
According to the PERILS reporting schedule, the latest estimate of market losses for this campaign will be released on April 13, 2026 (three months after the campaign end date).
In January 2026, more than 30 major bushfires broke out in the southeastern Australian state of Victoria, burning approximately 400,000 hectares of land. It is believed to be the most devastating bushfire since the Black Saturday bushfires in February 2009.
According to PERILS, the bushfires were sparked by a heatwave and fueled by dry grasslands, with multiple fires scorching hectares of mostly rural land, killing one person and causing significant damage to property, livestock and infrastructure.
Darryl Pidcock, head of PERILS Asia Pacific, commented: “While this event is not as severe as the ‘Black Summer’ fires of 2019/20, it is the insurance industry’s first major bushfire event in almost six years. During this period, we have observed significant Cat losses primarily caused by ‘wet’ events such as cyclones, floods and severe convective storms.
“Since the ‘Black Summer’ fires, there has been considerable research into the impact of major fires, followed by industry and government efforts to raise awareness and mitigate risks to rural properties. This event is different to the 2019-20 fires in that it occurred primarily in grassland areas and was fueled by extremely dry grass and strong winds, with the fires moving at speeds of up to 25km/h at their peak.”
He added: “Our next damage report will be due on 13 July 2026 and will provide more detailed data, including postcode and coverage type, to better understand the damage caused and support the continued development of the bushfire model.”
