Wildfires in Australia that have claimed 166 lives and could unofficially cost more than Australian $500 million (U.S. $340 million) in insured losses according to one report, but the nation's insurance council said it is too soon to put a figure on the losses.

The Insurance Council of Australia said while it is too early for a dollar estimate it is listing the Victoria State fire as a catastrophe loss. The Insurance Council classifies a catastrophe at insured loss of more than Australian $10 million.

"As general insurance industry statistics on the number of claims and insurable costs are collated they will be released by the Insurance Council of Australia in line with its Catastrophe Coordination Arrangements," Kerri Kelly, chief executive, said in a statement.

The Sydney Morning Herald reported an analyst estimated the insured loss at Australian $500 million, with total loss at over Australian $2 billion (U.S. $1.36 billion).

AIR Worldwide said that nearly 550,000 acres had been burned and more than 800 homes lost with fires burning around Melbourne. Two towns, Kinglake and Marysville, were totally destroyed.

Risk Management Solutions said the last major fire outbreak was in 2003 when 500 homes were destroyed in the outskirts of Canberra with insured losses of Australian $350 million ($238 million).

According to a report issued to the Victoria Department of Sustainability and Environment, the median price for a home across Victoria was Australian $322,000 ($218,780). The total loss of 800 homes at the median price would amount to Australian $257.6 million ($175 million).

That figure does not include the loss of commercial property, auto or lives lost.

The 166 dead were reported by the nation's ABC Radio station, which also reported that arson is suspected and the fires are being treated as crime scenes. It also quoted government officials saying the fires would take weeks to contain.

Special Reports /

Australia Wildfires Insurance Losses Could Exceed U.S. $300M

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