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PERILS raises Victoria bushfires insured loss estimate to AUD 860m

The update breaks losses into personal property at 30%, commercial property at 68%, and motor hull at 2%.

Reported · Written up by our desk · Property Insurance

Zurich-based catastrophe insurance data provider PERILS has lifted its third estimate for the January 7 to 13, 2026 Victoria bushfires, raising the insured industry loss to AUD 860 million.

In its coverage for Australia, PERILS said the figure is based on detailed loss data collected from the majority of the Australian insurance market, mapped by postcode and across property and motor hull lines. It attributed 30% of the loss to personal lines property, 68% to commercial lines property, and 2% to motor losses.

The current estimate compares with PERILS’ earlier figures of AUD 786 million issued three months after the event and AUD 810 million issued six weeks after the event.

PERILS described the bushfires as driven by extreme heat, dry vegetation, strong winds, and ignition sources including lightning and human activity, with around 900 buildings destroyed, disruption to critical infrastructure, and one fatality. It said it will release its next updated market loss estimate on January 13, 2027, 12 months after the event’s end date.

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