Catastrophe data aggregator PERILS has published its third industry loss estimate for the Victoria Bushfires which took place during the period of January 7th to 13th, 2026, with the insured industry loss now standing at AU$860 million.
PERILS published its initial industry loss estimate for the event in late February, six weeks after the event end date, putting the total at AU$786 million.
The company then published its second industry loss estimate in April, three months after the event end date, lifting the total to AU$810 million.
Now, in its third insurance industry loss estimate for this event, PERILS has raised the total to AU$860 million.
In line with its coverage definition for Australia, PERILS confirmed 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.
According to PERILS, personal lines property losses represent 30% of the loss, while commercial lines property losses represent 68% and motor losses 2%.
“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,” PERILS explained.
Adding: “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.”
PERILS has confirmed that an updated estimate of the insurance market loss from the bushfires will be published on January 13th, 2027, twelve months after the event end date.
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.”
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