Insurers and government agencies are coordinating bushfire recovery, claims handling, and financial hardship measures for communities affected by the Victorian fires, as insured losses rise and the impacts flow through to households, businesses, and local councils.
Insurers have expanded their presence in fire-affected parts of Victoria following bushfires that have been burning since early January, including the Longwood and Harcourt fires in the state’s north. IAG has deployed claims and customer teams across its brands – RACV Insurance, WFI Insurance, CGU, RACQ Insurance, and NRMA Insurance – to assist households, small businesses, and farms with assessments, temporary accommodation, and initial recovery steps.
IAG executive general manager of property claims Scott Lindsay said the group is maintaining a field presence in impacted areas. “Our mantra is first to arrive and last to leave – so we’ll continue to stay on the ground and support our customers through the recovery and rebuild process. As soon as it was safe to do so, we had our network of assessors on the ground, visiting customers, immediately assessing our customers’ losses, and ensuring they had access to temporary accommodation and emergency financial assistance,” Lindsay said. IAG’s RACV Response Vehicle, available to all of the group’s brands, was deployed on Jan. 11 and has since operated in multiple locations, assisting more than 150 customers. One unit is based at Harcourt Recreation Reserve, while a second is at Alexandra Shire Hall, providing walk‑in access for claim lodgement, documentation queries, and information on policy entitlements.
The Insurance Council of Australia (ICA) estimates that insured losses from the Victorian bushfires that began on Jan. 7 have reached more than $200 million from 3,123 claims. The tally covers home, motor, commercial, and business interruption classes, with about 30% of property claims currently assessed as total losses. Insurers are prioritising claims from the most affected households and businesses and expect further notifications as road access improves and more policyholders return to damaged properties. Industry teams have been present in towns including Castlemaine, Harcourt, Natimuk, Seymour, Skipton, and Yea, with plans to move into additional areas when conditions allow.
ICA CEO Andrew Hall said the event remains active and is influencing how insurers organise their operations and customer contact. “While insurers are continuing their strong focus on Victoria, safety is the upmost priority. Being here on the ground, you can understand the true scale and impact of these fires, and the devastation it has caused. Insurers are working hard to support impacted customers and are already making plans to revisit Victoria for face-to-face consultations in coming weeks. For anyone who has damage and is yet to make a claim, I encourage them to get in touch with their insurer to commence the claims process, even if the full extent of the damage remains unknown,” Hall said.
Suncorp has also increased its activity in the affected regions. CEO Steve Johnston and chief executive consumer insurance Lisa Harrison visited Harcourt on Feb. 1 to meet customers and review local operations, supported by Mobile Disaster Response Hubs and local teams. “Our teams have been active on the ground in Harcourt for the past two weeks, working directly with affected families to help them lodge claims and accelerate recovery efforts,” Johnston said.
To date, Suncorp has received 300 claims for the Longwood and Harcourt fires – 185 for home and 119 for motor. Johnston, who also chairs the ICA, said Suncorp builders are working with government and councils on debris removal and site preparation. “We are collaborating with all recovery agencies to ensure impacted families can re-establish their lives as quickly as possible, with Suncorp builders currently on the ground coordinating the removal of debris and preparing land for the rebuilding phase,” Johnston said.
In parallel with insurance responses, the Allan Labor Government has issued new Ministerial Guidelines on the Payment of Rates and Charges aimed at ratepayers experiencing financial hardship, including those affected by bushfires. Announced on Feb. 5 by Minister for Local Government Nick Staikos, the guidelines provide a framework for how councils recognise and respond to hardship, including situations linked to disasters, family violence, and economic abuse. The guidance sets expectations that councils will offer flexible arrangements – such as payment plans, deferrals, or waivers – and ensure ratepayers can access hardship policies and application processes online and in person. It also encourages councils to refer ratepayers to financial counsellors where required.
Rate increases have been capped at 2.75% for the 2026–27 financial year, in line with the forecast Consumer Price Index. “These hardship guidelines will ensure councils treat ratepayers who are dealing with difficult financial or personal circumstances with compassion, fairness, and understanding. By providing clear guidance, we’re giving councils the tools they need to support vulnerable Victorians facing prolonged hardship or unforeseen hurdles such as job loss, illness, or other changes to family circumstances,” Staikos said.
Federal Member for Bendigo Lisa Chesters noted the role of insurance in local recovery in areas such as Mount Alexander Shire. “I’m grateful for the support of organisations and service providers are showing fire-affected community members across the Mount Alexander Shire,” Chesters said, adding that “insurance will play such a big part in our community’s recovery. It was so critical to have insurance industry representatives on ground and meeting people face to face within days of the Ravenswood/ Harcourt fire.”
With extreme heat and strong winds continuing to influence fire conditions in parts of Victoria and South Australia, insurers and the ICA are restating guidance to policyholders on preparedness and claims. Recommendations include monitoring emergency warnings, maintaining a written bushfire survival plan with clear evacuation triggers, and documenting damage with photos or video before clean‑up or repairs. For insurance professionals, the event is highlighting operational settings for catastrophe response, including surge staffing, mobile claims units, digital lodgement channels, and communication around benefits such as temporary accommodation and additional living expenses. It is also underlining the need for regular reviews of sums insured, including renovations and higher‑value contents, and awareness of how public hardship programs may interact with customers’ overall financial position during recovery. Lindsay urged residents in at‑risk areas to continue to follow official advice and to factor family members, neighbours, and animals into evacuation and contingency planning. The combined insurer and government activity is expected to continue over coming months as the event moves from initial triage to repair, rebuilding, and longer-term resilience initiatives.
