in property insurance rates.

The warning follows the devastating impact of hurricanes on the insurance and reinsurance market.

Last year Hurricane Iniki in Hawaii and Hurricane Andrew cost the worldwide reinsurance industry more than $20 billion. In 1987 local insurers paid out almost $40 million following Hurricane Emily -- although they were able to recover much from reinsurers worldwide.

Now Bermuda's insurers have been put under pressure to bump up rates by an average of 20 percent.

They have warned hurricane deductibles will increase to $500 for home owners, and by one percent for non-residential properties.

And, in some cases, hurricane cover may be difficult to get.

Bermuda's property insurers have taken out an ad in today's Royal Gazette , explaining the rises.

The ad states a 20 percent rise could appear large in Bermuda, where a rate increase of that size has not occurred "in living memory''.

But it goes on: "Bermuda's insurers are pleased that they have been successful in limiting this increase, to a level which is extremely modest when compared to similar areas.

"Bermuda must now consider the lengthy period of falling property insurance rates has ended.'' Last night Mr. Glenn Titterton, president and chief executive officer of BF&M Insurance Group, said local insurers had been forced to face "very restrictive'' reinsurance terms.