Zurich-based catastrophe insurance data provider PERILS has released its third estimate for the Victoria Bushfires, which occurred from 7 to 13 January 2026, with the insured industry loss now standing at AUD 860 million.
In line with its coverage definition for Australia, PERILS explained that this loss number is based on detailed loss data by postcode and property and motor hull lines of business collected from the majority of the Australian insurance market.
Personal lines property losses reportedly represent 30% of the loss, while commercial lines property losses represent 68% and motor losses 2%.
The updated estimate compares to the previous PERILS estimates of AUD 786 million issued three months after the event, and AUD 810 million issued six weeks after the event.
Providing some background, PERILS noted that in January 2026, the state of Victoria in south-eastern Australia experienced over 30 major bushfires, burning approximately 400,000 hectares and causing widespread damage, particularly in the central and northern regions.
“The bushfires were driven by extreme heat, dry vegetation, strong winds, and ignition sources such as lightning and human activity, with around 900 buildings destroyed, disruption to critical infrastructure, and one fatality,” the firm said.
Darryl Pidcock, Head of Asia Pacific at PERILS, commented, “This is the second time – the first being the 2019
‘Black Summer’ Australia bushfires – that PERILS has reported on an Australian bushfire event at such a high level of detail.
“Whilst we have observed regular severe convective storm and flood events in recent years, it is a reminder of the impact bushfires can have during a dry and hot summer season.
“We believe these insights support the insurance industry in the better understanding and modelling of bushfire risk as it prepares for next summer.”
PERILS concluded that, in line with its reporting schedule, an updated estimate of the market loss will be released on 13 January 2027, 12 months after the event’s end date.
