Insurance Catastrophe Declared in Victoria Amid High Bushfire Risk
What happened
The Insurance Council of Australia declared an Insurance Catastrophe in Victoria on November 1, 2026. This declaration followed earlier events where the ICA named a catastrophe on January 16, 2026, covering 18 local government areas. By May, total insured losses were estimated at $860 million, with over 4,700 claims lodged across property, motor, commercial, and business interruption lines.
Why it matters
The declaration highlights a growing protection gap, as brokers face constrained capacity and pre-season policy embargoes ahead of the high-risk fire season. RACV Insurance reported a 20-fold year-on-year increase in bushfire-related claims, with last summer’s fires accounting for more than 80% of its five-year bushfire claims.
Who's involved
- ICAInsurance Council of Australia, which declared the catastrophe
- Jacinta AllanPremier of Victoria, who manages the state's crisis response
- City of Greater GeelongLocal government area that must manage disaster response and recovery
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- City of Greater GeelongSpeculative
Local government might face increased costs managing disaster response and coordinating recovery efforts.