PERILS pegs Victoria bushfire insured market loss at AU $786m

Catastrophe data aggregator PERILS has provided its first insurance industry loss estimate for the Victoria Bushfires which took place between January 7th and 13th 2026, at AU$786 million.

PERILS’ estimate of the insurance market loss for the event is based on loss data collected from the affected insurers.

As per the PERILS coverage definition for Australia, this preliminary estimate encompasses the property and motor hull lines of business.

The events, which impacted the state of Victoria in south-eastern Australia, were the most devastating bushfire outbreak since the Black Saturday bushfires of February 2009, PERILS explained.

The bushfires were reportedly triggered by a heatwave and fueled by dry grass land, as multiple fires burnt roughly 400,000 hectares of mostly rural land, causing one fatality and significant loss to property, livestock and infrastructure.

PERILS has confirmed that an updated estimate of the insurance market loss from the bushfires will be published on April 13th, 2026, three months after the event end date.

Luzi Hitz, Product Manager at 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.”

He added: “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.”