Some increases have already shot through the 20 percent barrier put up by insurance companies earlier this year.

One householder this week revealed he had been hit by a 66.7 percent hike.

He said his premium had soared from $956.25 to $1,593.75 this year. His property is insured at $425,000.

The man, who did not wish to be named, showed his renewal notice to The Royal Gazette .

In January, Bermuda's property insurers warned that rates would increase on average by 20 percent.

They said hurricane deductibles would increase to $500 for home owners, and one percent for non-residential properties.

In some cases, hurricane cover may be difficult to get.

"Bermuda must now consider that the lengthy period of falling property insurance rates has ended, as a result of circumstances beyond Bermuda's control and that future adjustments to windstorm deductibles and rates are likely,'' insurers said in a joint statement.

The rates rise follows the massive impact recently of hurricanes and other disasters on the insurance and reinsurance market.

Worldwide insurance losses from both natural and manmade catastrophes reached new highs in 1992.

Some put the amount paid out in property insurance to $27.1 billion -- an amazing 87 percent increase on the previous year.

Hurricane Andrew and Iniki were the most destructive, with insured losses far exceeding $17.1 billion.

Many cash-hit reinsurers -- on whom Bermuda's insurers rely for recouping losses in major disasters -- left the market.

Others put the squeeze on insurers by bumping up their reinsurance rates.

This, in turn, has forced insurers to put up policy holders' rates dramatically.

This week insurers said there was still pressure on them to increase rates.

Mr. John Sainsbury, managing director of the Argus group, admitted the position had worsened from the time local insurers issued their statement.

And he said large commercial properties were particularly vulnerable to increases.

It was probably "wishful thinking'' to peg the rates at 20 percent on average for these properties, he added.

Mr. Sainsbury said Argus had recently lost two reinsurance firms it did business with.

Mr. Andrew Bickham, vice president for insurance at L.P. Gutteridge, pointed out insurance rates had returned to the 1980 level after being relatively modest for 10 years .

"The pendulum has now swung back,'' he added.

Mr. William Madeiros, business development manager of Colonial Insurance, said his firm tried to stick to the 20 percent level.

But he added: "Reinsurers have definitely put the squeeze on local insurers.'' Meanwhile, with many reinsurers pulling out of the market, others hope to capitalise on the decreased competition.

There are plans to incorporate at least five new companies in Bermuda, providing catastrophe coverage.

It is believed this could see new capital of well over $1 billion come to the Island.

Recently Mid Ocean Reinsurance Company, which formed here last November with over $350 million in capital, unveiled proposals to go public.