Insurers have activated disaster response teams in Victoria as the state confronts its worst bushfires since the 2019-20 Black Summer.

The Insurance Council of Australia has declared the fires a significant event and says they may be escalated to catastrophe status if there is a significant rise in claim numbers or complexity, or in consultation with insurers.

Across property, motor and commercial lines, 749 claims have been lodged, the council says.

The industry expects the number to rise when conditions have eased and more residents return to assess damage.

“While it’s too early to estimate the total damage bill of these fires, insurers stand ready to assist impacted policyholders in their recovery,” ICA director of mitigation and extreme weather response Liam Walter said.

Under a significant event declaration, ICA begins its claims data collection, analysis and reporting processes in consultation with members, and its representatives work with government and agencies to understand impacts on the community and ensure affected residents receive help. 

More than 350 structures including homes have been destroyed by fires that intensified as a heatwave hit Victoria last week. Fire risk was already high amid extreme hot and dry conditions.

VicEmergency’s online live map shows many emergency warnings and “watch and act” alerts remain in place this afternoon.

IAG has received about 200 claims, a spokesperson told insuranceNEWS.com.au. It has activated its 24/7 major event command centre and is mobilising response teams to support customers. 

Allianz says its claims team is contacting affected customers, offering emergency relief payments and temporary accommodation.

At Suncorp, about 60 home and motor claims have been lodged, the insurer said in a statement to the Australian Securities Exchange.

“Bushfire risk remains high across southern Australia, particularly Victoria, and we are closely monitoring from our Disaster Management Centre in Brisbane,” CEO Steve Johnston said.

“We are utilising satellite imagery to evaluate the damage ahead of our teams being able to be safely on the ground.”

Suncorp also gave an update on its first-half natural hazards costs. It says nine events exceeded $10 million and the overall bill is estimated at $1.319 billion.

The company set its 2025-26 natural hazards allowance at $1.77 billion – $866 million for the first half and $904 million for the second.

Suncorp expects the hazard costs to affect first-half reported profits and shareholder returns.