PERILS, the Zurich-based catastrophe insurance data provider, has lifted its second insurance industry loss estimate for the Victoria Bushfires, which took place from January 7th to 13th, 2026, to AU$810 million.
These fires destroyed 900 buildings, including 330 homes, and impacted infrastructure, with over 20,000 livestock lost, and tragically, resulted in one fatality.
The new estimate compares to the initial loss estimate of AU$786 million, issued by PERILS on February 26th, 2026, six weeks after the event end date.
As usual, the second 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 posted on April 13th, 2026, three months after the event end date.
In January 2026, over 30 significant bushfires occurred across the state of Victoria in south-eastern Australia, consuming approximately 400,000 hectares of land. These were deemed the most destructive bushfire outbreak since the Black Saturday bushfires of February 2009.
According to PERILS, the bushfires were triggered by a heatwave and fueled by dry grassland, as multiple fires burned hectares of mostly rural land, causing one fatality and significant loss to property, livestock, and infrastructure.
Darryl Pidcock, Head of Asia Pacific, PERILS, commented, “Whilst this event is less severe than the ‘Black Summer’ fires of 2019/20, it is the first major bushfire event for the insurance industry in the last six years. During this period, we have observed major Cat losses caused primarily by ‘wet’ events such as cyclones, floods and severe convective storms.
“There has been considerable research since the Black Summer fires into the impacts of major fires with subsequent efforts by the industry and Government to improve awareness and risk mitigation of rural properties. This event differed from the 2019-20 fires as it occurred primarily in grassland areas, fueled by extremely dry grasses, intense winds with fires moving at up to 25 kmph at their peak.”
He added, “Our next loss report is due on 13 July 2026 and will provide more detailed data, including post code and coverage type to enable a better understanding of the damage caused and support the ongoing development of bushfire models.”
