Northern NSW bushfires destroyed at least 45 homes and about twice as many rural outbuildings last week as hot weather and dry conditions fuelled the flames.

The Insurance Council of Australia (ICA) declared its second bushfire catastrophe for the region in five weeks.

“It may take several weeks before insurers are able to quantify the extent of insurance losses,” ICA CEO Rob Whelan said.

NSW Rural Fire Services said on Friday that 37 homes were destroyed by the Busbys Flat Road fire and eight by the Long Gully Road fire. Cooler weather and rain reached some areas before the weekend.

Two people died in the Long Gully fire, which has been burning for more than a month after it was ignited by a lightning strike. Arson investigations are under way for another of the fires.

The Bureau of Meteorology says there is an increased risk of heatwaves and bushfires in coming months due to climate influences such as the strong Indian Ocean Dipole.

“The increased odds of warmer than average days, coupled with a very dry landscape and a likely late start to the northern wet season, give a clear indication that we’re likely to see more heatwaves than normal,” Head of Long-range Forecasts Andrew Watkins said today.

“It also adds to the potential bushfire risk, particularly when you consider how dry many parts of southern and eastern Australia are at the moment.”

Australia’s January-September rainfall was the fourth lowest on record and the lowest since 1965, while daytime temperatures so far this year are tracking towards the highest on record.

The NSW Department of Primary Industries says about 97% of the state is already affected by one of three drought categories.

A total of 89 NSW homes have been destroyed in the bushfire season to date, while Queensland has also been affected by early bushfires.