Some companies have faced increases of between 40 and 50 percent in their rates, following large increases last year. And home owners have also been hit with increases around 10 percent after 20 percent increases last year.

However BF&M President Mr. Glenn Titterton stressed that despite the dramatic increases, rates are still lower than in 1980.

Disasters like Hurricane Andrew, Hurricane Hugo and Hurricane Gilbert and the European winter storms have sent wind-storm rates rocketing worldwide.

Some companies are faced with increases of tens of thousands of dollars as the 40-50 percent rises come into force. Home owners, meanwhile, were spared a repeat of last year's 20 percent increase, but still found rates had risen above the rate of inflation, by eight to ten percent.

London reinsurers, which include large European and American companies have taken a battering over the past five years. Managing Director of Argus Insurance, Mr. E. John Sainsbury said: "The London re-insurers have been clobbered and are trying to recover. They want to put some discipline back into the market.'' Mr. Sainsbury said Lloyd's had gone through a catastrophic period, but other companies had also suffered and some had been declared bankrupt during the financial "bloodbath''.

The re-insurance companies have dictated the rates to the Bermudian companies in return for providing cover. Mr. Titterton said: "The international re-insurers do not have unlimited capacity or capital. Therefore they have to decide how much capacity they are going to afford to Bermuda.

"This is determined by the risk in Bermuda and the sort of rates being obtained in Bermuda. They have decided that rates have been too low.

"In commercial properties the reinsurance capacity is critical and we have found it difficult to find that capacity.'' Bermuda's rates are much lower than Caribbean islands thanks to local insurers stressing a whole series of arguments to the international market. But Mr.

Titterton said the differential had now become a little too large to help their cases.

Mr. Sainsbury said: "Our experience in Bermuda does not necessarily justify the rate increases that have been imposed on us in London. We have to be lumped with what is happening worldwide.

"Very often we are linked to the United States which is very, very vulnerable to hurricanes particularly the Florida area. It is a very high risk area. We are much too small to dictate our rates to the reinsurers.'' Mr. Sainsbury added that some businesses were considering dropping wind-storm insurance altogether but it was a great risk with world weather conditions changing.

And to complaints that Bermuda is paying for other countries disasters, Mr.

Titterton said: "Next year it could be Bermuda that has the incident.

"They talk in terms of the Big One coming, we have never really had it.

Hurricane Emily was a small, fast-moving hurricane, that was not the big one.'' Both men said insurance rates often ran in cycles and worldwide rates could now be reaching a peak.

Mr. Titterton said: "The home rates are only about as bad as they were in 1980 and commercial rates are still only climbing towards that 1980 rate.''