Zurich-based catastrophe insurance data provider PERILS has reported that the bushfires which swept through Victoria, Australia, between 7 and 13 January 2026 are estimated to have caused insured losses of approximately A$786 million (US$559 million). These figures are based on data provided directly by affected insurers and encompass both property and motor hull insurance lines, as defined under PERILS’ Australian coverage criteria. The company is scheduled to release an updated loss estimate on 13 April 2026.
The January 2026 fires in Victoria are considered the most destructive since the infamous Black Saturday bushfires of 2009. Driven by intense heatwaves and parched grasslands, the fires spread rapidly, scorching an estimated 400,000 hectares, predominantly in rural areas. The disaster claimed one life and inflicted extensive damage on homes, livestock, crops, and infrastructure.
Luzi Hitz, PERILS’ product manager, commented: “Victoria has experienced two major bushfire crises in recent years – Black Summer 2019/20 and Black Saturday 2009, which tragically claimed 173 lives. This latest event resulted in far fewer fatalities because the fire largely affected less densely populated areas. Timely emergency declarations, prompt evacuations, and extensive firefighting efforts were critical in saving lives.”
The following table summarises key details of the January 2026 bushfires:
| Element | Details |
|---|---|
| Fire dates | 7–13 January 2026 |
| Area affected | Approx. 400,000 hectares (primarily rural) |
| Estimated insured loss | A$786 million (US$559 million) |
| Fatalities | 1 |
| Insurance lines affected | Property, Motor Hull |
| Previous major bushfires | Black Saturday 2009, Black Summer 2019/20 |
PERILS annually provides reliable information on insurance losses from natural disasters such as bushfires, floods, and cyclones. Experts have warned that, due to climate change, Australia may see more frequent and severe bushfire events in the coming decades.
The Victorian government has already initiated recovery and compensation efforts. Measures include clearing affected areas, assessing the full extent of losses, and allocating special funds for reconstruction. Local communities are actively participating in rebuilding efforts. Additionally, authorities plan to enhance early warning systems and implement stricter forest management policies to mitigate the impact of future fires.
The January 2026 bushfires have now been recorded in Victoria’s history as a major natural disaster, highlighting the importance of rapid emergency response and coordinated relief operations in protecting lives and property.