Munich Re has upped its losses estimate from the February Chilean earthquake by more than 40% as the claims picture in the devastated South American country slowly becomes clear.

Nearly four months after the earthquake that levelled the southern city of Concepcion, Munich Re says it is liable for $US1 billion ($1.18 billion) in claims, before tax, up from the $US700 million ($828 million) it predicted in April.

The giant reinsurer now calculates total insurance losses from the Chilean earthquake at $US8 billion ($9.46 billion). Swiss Re has also released an updated loss figure of $US650 million ($758 million), an increase of $US100 million ($116 million) from its forecast in March.

The Chilean earthquake is set to become the second most damaging in history behind the 1994 Los Angeles quake, which incurred insured losses of $US22.2 billion ($26.26 billion).

Munich Re CEO Torsten Jeworrek says pressure to lift reinsurance rates will continue as the frequency of natural events increases.

“Events like Chile’s devastating earthquake reinforce our case for insisting that risks be consistently written at adequate prices, even after years where losses have been relatively low,” he said.

When the Chilean earthquake is added to the recent Australian hailstorms, Winter Storm Xynthia and the Gulf of Mexico oil spill, reinsurance losses in the first half of 2010 have been the heftiest in decades.

Munich Re says it has €70 million ($100.2 million) of exposure to Winter Storm Xynthia and a €160 million ($229 million) exposure to the Australian hailstorms. Losses from the Gulf of Mexico oil spill are expected to reach “low triple digits” in US dollars.