IAG is cautioning that current heatwave and bushfire conditions across southern Australia are heightening risk for households and insurers, and is calling on residents to prepare properties and review bushfire plans as temperatures climb. The insurer – whose brands include NRMA Insurance, CGU, WFI, and Rollin’ – is directing its bushfire preparedness messaging to communities in South Australia, Victoria, and southern New South Wales as authorities manage high temperatures, strong winds, and elevated fire danger ratings.
IAG meteorologist and senior weather risk analyst Kathryn Turner said a mild heatwave already affecting the three states is expected to intensify. “Extreme bushfire ratings are in place for parts of South Australia and Victoria. As dry and gusty winds travel from the northwest and combine with extreme temperatures, we’re going to see optimal bushfire conditions towards the end of the week. Fires can spread rapidly and even jump natural and man-made barriers such as roads, rivers, and firebreaks. Embers carried by the wind can travel many kilometres ahead of a fire, so communities well outside the direct path can still be affected,” Turner said. IAG’s latest Severe Weather in a Changing Climate report indicates that southern Australia is experiencing more frequent and intense bushfire conditions as hotter, drier, and more fire-prone weather intersects with changing rainfall patterns to create a more fire-supportive landscape.
Those trends are reflected in current activity in Victoria’s north, where residents near Bungil, Granya, and Thologolong have been ordered to leave immediately as bushfires burn in steep and remote terrain during an intense heat event. The Victorian State Control Centre has advised that severe to extreme heatwave conditions are expected to persist until Saturday, with temperatures forecast to reach the mid-40s across large parts of the state. Extreme heatwave warnings are in place for the Northern Country, North East, East Gippsland, and West and South Gippsland districts, while the rest of Victoria is under a severe heatwave warning. Total Fire Bans and Extreme or High Fire Danger Ratings apply across several fire weather districts.
Fire agencies in South Australia are experiencing similar conditions, with temperatures above 40°C on consecutive days combining with hot, dry, and windy weather. In Victoria’s north-east, a bushfire that started in Mt Lawson State Park has spread across hundreds of hectares, with ground crews and aerial tankers deployed ahead of a forecast wind change. State Response Controller Garry Cook said residents should act early on information from authorities. “It is really important people take the actions needed to protect themselves and their family from both the heat and elevated fire danger today. Have your bushfire plan ready to go and be prepared to leave early,” Cook said.
IAG executive manager property claims fulfilment Scott Lindsay said emergency planning and preparation of homes are important components of reducing harm to people and limiting damage to insured assets. “The threat of bushfires isn’t just for regional or rural communities. More people than ever are living on the bushland-urban interface, putting millions of Australians at-risk of bushfires across metropolitan areas. It’s imperative Australians know how to protect themselves and to prepare their homes if disaster strikes. With temperatures set to climb, ensure it’s safe to be outdoors and check on elderly or vulnerable neighbours who may need assistance preparing. Safety is always the number one priority; that means having a well-stocked emergency kit, a bushfire survival plan, and staying update to date with local emergency services,” Lindsay said.
IAG’s guidance to policyholders and communities includes clearing gutters of leaves and debris, pruning trees and shrubs close to buildings, keeping grass short, and moving mulch and other combustible materials – including woodpiles – away from structures. The insurer also highlights the need to check seals around doors and windows to limit ember entry, position gas cylinders on the side of the house away from vegetation, and ensure hoses can reach all sides of the dwelling and are connected to a reliable water source for those whose plan involves staying and defending. Emergency services and resilience organisations further recommend having a written bushfire survival plan, using official apps and websites such as Hazards Near Me and local fire service channels, preparing an emergency kit, and including pets and livestock in evacuation arrangements.
The current fire and heat conditions are affecting multiple insurance classes. For home, contents, and strata policies, key exposures include direct bushfire damage, ember attack, and smoke, ash, and soot affecting properties in and around high-risk districts in Victoria, South Australia, and New South Wales. In areas where homes are not reached by flames, extended power outages may still give rise to claims for food spoilage and power surge damage, subject to policy wording and limits. Commercial property and business interruption covers are also in focus as evacuation orders, road closures, and restricted access zones expand. Businesses located near firegrounds or in smoke-affected regions may experience structural damage, contamination, or loss of access. Policy terms that address closure by authority or prevention of access will be relevant if disruption continues.
Rural and farm portfolios face heightened risk to fencing, pasture, fodder stores, sheds, machinery, and livestock. Under Total Fire Bans, liability exposures linked to negligent ignitions from agricultural or contractor activity may increase, with potential for third-party property damage or injury claims. At the same time, the heatwave presents issues for health, life, personal accident, and workers’ compensation insurers, as sustained high temperatures raise the likelihood of heat-related illness and incidents, particularly for older people and outdoor workers.
IAG reports that community attitudes to natural catastrophe risk have shifted in recent years. Following the January 2025 Los Angeles wildfires, its research found that nearly 90% of Australians and New Zealanders intended to take proactive steps to protect homes and contents from bushfires and other severe weather events. “Global severe weather events like the January LA wildfires, and the more recent December 2025 bushfires on the NSW central coast underscore how critical it is for governments, insurers, and communities to work together on bushfire mitigation measures,” Lindsay said.
As heatwave and bushfire conditions continue across southern Australia, insurers and brokers are expected to maintain frequent communications with customers, reinforce preparedness and coverage awareness, and monitor exposure concentrations in affected regions. For the sector, the current conditions provide another reference point for understanding how mitigation, pricing, product design, and public policy interact in an environment of recurring severe bushfire seasons.
