PERILS has disclosed its second industry loss estimate for the Victoria Bushfires, which occurred between 7 and 13 January 2026.
The estimate of the insurance market loss, based on loss data collected from affected insurers is A$810m ($577.6m), according to a statement from the firm. This compares to the initial loss estimate of A$786m, which PERILS issued on 26 February 2026.
In line with the PERILS coverage definition for Australia, these figures cover the property and motor hull lines of business.
“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,” said PERILS Head of APAC Darryl Pidcock.
“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.”
Mr Pidcock also said, “This event differed from the 2019/20 fires as it occurred primarily in grassland areas, fuelled by extremely dry grasses, intense winds with fires moving at up to 25km/h at their peak.”
Scale of the damage
In January 2026, more than 30 significant bushfires occurred across the state of Victoria in south-eastern Australia, consuming approximately 400,000 hectares of land.
The most destructive events occurred between 7 and 13 January 2026 with 900 buildings destroyed, including 330 homes. Infrastructure was impacted and over 20,000 livestock lost, with one fatality.