The first official notice on insurance losses from the brushfires that have ravaged Australia is pegged at $790 million (U.S. $506 million at the current exchange rate).

The Insurance Council of Australia put that approximate insurable cost figure on the fires that began in early February based on claims received to date, said Kerrie Kelly, Insurance Council chief executive officer.

She said the estimate includes residential, commercial, industrial and farming losses.

Insurers, to date, have received 6,230 claims, the Insurance Council said.

However, the association added, there are a number of issues that are impacting policyholders and could delay the recovery process.

These issues include continued difficulty in accessing affected areas, asbestos removal and rebuilding standards.

Ms. Kelly said that of the claims received, 85 percent relate to property and contents and 15 percent are motor vehicles. Insurers have already paid out approximately $40 million (U.S. $26 million) in emergency payments to policyholders.

The death count stands at over 200 people.

According to a Guy Carpenter Catastrophe Information report, four major fires are still burning in the state of Victoria and the threat of fire remains high. A total of 1,700 square miles have been affected by the fires and a number of towns were declared crime scenes because arson is suspected.

Special Reports /

Australia Fire Losses Pegged At $500M-Plus

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