9 January 2020Insurance

AIR Worldwide updates on bushfires in Australia

Catastrophe risk modelling firm AIR Worldwide is continuing to monitor the bushfires burning in Australia. It said that roughly 10.3 million hectares (25.5 million acres) have burned and more than 1,500 homes have been destroyed in hundreds of bushfires occurring within a vast area.

Most damage is reported in New South Wales—Australia’s most populous state— and Victoria, with additional losses occurring in South Australia, and Queensland. Bushfires are also active in Western Australia and Tasmania.

Prolonged widespread smoke from the fires has led to hazardous air quality posing health risks, closing schools, and disrupting travel for about a third of Australia’s population.

“More than 100 roads remain closed across Victoria’s bushfire zones,” said AIR Worldwide in a release. “In addition, more than 400 km of the Eyre Highway between Esperance and Caiguna—the only paved road linking Western and South Australia—is closed and will likely remain so for several more days, as fire warnings remain in place in the surrounding areas.”

According to Australia’s Bureau of Meteorology (BOM), 2019 was the hottest and driest year on record. Extreme heat and extreme drought conditions are key ingredients for bushfire that have been exacerbated by climate change over the last few decades.

While southeastern Australia had cooler weather and some rain Monday, fire danger is still expected to worsen, as temperatures of more than 40° Celsius (104° Fahrenheit), dry conditions, and strong winds are forecast for Thursday and Friday.

A state of emergency was declared for six areas in Victoria, and New South Wales declared a third 7-day state of emergency. The most catastrophic bushfire event in Australia’s history—the Black Saturday fires in 2009—caused more than A$1 billion ($690 million) in damage at the time. Losses reported from bushfires since September 5, 2019, have not approached this level; the Insurance Council of Australia (ICA) has recorded A$700 million in claims filed, as of January 5.

“It is still early in the season and bushfires are projected to continue for many weeks. AIR will continue to monitor the situation and provide updates as warranted,” stated AIR worldwide.

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