The Insurance Council of Australia (ICA) has declared the Margaret River bushfires in Western Australia an insurance catastrophe event.

CEO Rob Whelan says while the damage is difficult to estimate with any accuracy at present, it is likely to be in the tens of millions of dollars.

The WA Government, local authorities and the insurance industry will work together on an insurance taskforce to assist with recovery.

Call centre staff at insurance companies are handling queries on the event and a telephone hotline has been set up.

Meanwhile, ICA has cut $10 million from its estimate of costs related to the February bushfires in suburban Perth. There are still 410 claims, but the expected cost has been revised from $45 million to $35 million.