The current bushfires in Australia that have impacted 18 Local Government Areas across the state of Victoria since 7 January 2026 have now been escalated from 'Significant Event' to 'Insurance Catastrophe'.
The Insurance Council of Australia (ICA) said on 16 January 2026 that current indications suggest around 30% of all property claims are total losses.
Since the ICA’s initial significant event declaration on 11 January 2026, insurers have been able to further assess the large recovery effort that will be required as a result of these severe bushfires, with 2,369 claims being lodged to date across property, commercial and motor lines.
The media statement released by the ICA said the extent of commercial losses will also be significant as a result of this event. ICA anticipates increased claims numbers as people start to return to their homes and businesses.
The ICA’s catastrophe declaration serves to escalate and prioritise the insurance industry’s response for affected policyholders. ICA representatives have been mobilised to work with local agencies and services and affected policyholders as soon as emergency services say it is safe to do so. Insurers will also mobilise disaster response specialists to assist affected customers with claims and assessments as soon as emergency services say it is safe to do so.
An industry taskforce has been established to identify and address issues arising from this catastrophe.
ICA Deputy CEO Kylie Macfarlane said, “These bushfires have been devastating for many communities across Victoria, and insurers’ priority is getting help to people as quickly as possible. We acknowledge that a large recovery effort will be required to help the state recover from this catastrophic event and insurers stand ready to support communities in this process."