PERILS, the Zurich-based catastrophe insurance data provider, has provided its first insurance industry loss estimate for the Victoria Bushfires, which took place from 7 to 13 January 2026 at AU$786 million.
The PERILS estimate of the insurance market loss for the event is based on loss data collected from the affected insurers. According to the PERILS coverage definition for Australia, this initial estimate covers the property and motor hull lines of business.
Following the PERILS reporting schedule, an updated estimate of the market loss for the event will be made available on 13 April 2026, three months after the event end date.
The events, which affected the state of Victoria in south-eastern Australia, were the most destructive bushfire outbreak since the Black Saturday bushfires of February 2009.
The bushfires were triggered by a heatwave and fueled by dry grassland, as multiple fires burned around 400,000 hectares of mostly rural land, causing one fatality and significant loss to property, livestock and infrastructure.
The Insurance Council of Australia (ICA) declared these bushfires an Insurance Catastrophe soon after the severity of the situation became clear.
Luzi Hitz, Product Manager, PERILS, commented, “Victoria has suffered two major wildfire disasters in recent years, the ‘Black Summer’ event of 2019/20 and the ‘Black Saturday’ event of 2009, the latter causing 173 fatalities.
“This time, the death toll was much lower, in part due to the bushfires impacting less populated areas, but also due to the rapid declaration of a state of emergency, early evacuations and extensive firefighting efforts, which undoubtedly helped to save lives.
“After six years of mainly ‘wet’ Cat events in Australia, including floods, cyclones and severe convective storms, the 2026 Victoria Bushfires serve as a reminder of the significant bushfire risk in Australia.”
