Victoria Bushfires Inflict US$559 Million Insured Loss

Zurich-based catastrophe insurance data provider PERILS has estimated that the recent bushfires in Victoria, south-eastern Australia, have resulted in insured losses of A$786 million (US$559 million). The fires raged from 7 to 13 January 2026, marking the most destructive wildfire event in the state since the infamous Black Saturday fires of February 2009.

In a statement, PERILS explained that the estimate is based on data collected from affected insurers and, in accordance with its Australian coverage definition, encompasses both property and motor hull lines of business. An updated assessment is scheduled for release on 13 April 2026.

The fires were fuelled by extreme heat and parched grasslands, spreading rapidly across approximately 400,000 hectares, predominantly in rural regions of Victoria. The disaster caused one confirmed fatality and inflicted substantial damage to homes, livestock, and critical infrastructure, highlighting the ongoing vulnerability of regional communities to climate-driven wildfire events.

PERILS Product Manager Luzi Hitz remarked, “Victoria has experienced two major wildfire disasters in recent years: the ‘Black Summer’ fires of 2019/20 and the ‘Black Saturday’ event of 2009, the latter claiming 173 lives. This recent disaster, while devastating in scale, resulted in a significantly lower death toll. This was partly because the fires impacted less densely populated areas, and partly due to rapid emergency declarations, early evacuations, and extensive firefighting efforts that undoubtedly saved lives.”

Experts note that the bushfires underscore the increasing financial and societal risks posed by climate change, particularly in regions experiencing hotter and drier conditions. Insurers and emergency services are being urged to strengthen risk mitigation measures, including community preparedness, early warning systems, and robust firefighting resources.

The following table summarises the key metrics of the January 2026 Victoria bushfires:

The 2026 Victoria bushfires serve as a stark reminder of the escalating hazards posed by wildfires in Australia, prompting insurers, policymakers, and communities to continue adapting strategies for both risk reduction and post-disaster recovery.