Leading assessment firm Risk Management Solutions now predicts economic losses from Hurricane Katrina and its aftermath might reach as much as $US100 billion – an unwelcome figure to arrive at as reinsurers gather in Monte Carlo for their annual “rendezvous”.

Total insured losses from the disaster range from $US25 billion to $US60 billion, making it easily the most expensive insured natural disaster in history.

The UK’s Financial Services Authority (FSA) has even reportedly asked British insurers and reinsurers for information on the impact of Hurricane Katrina amid mounting concern about the size of the bill facing the companies. An FSA spokesman said they have contacted insurers as part of routine supervision.

The reinsurers are meeting to negotiate 2006 contracts, and will meet again in Germany’s Baden-Baden in October to continue the dialogue. Analysts are tipping the reinsurers will increase rates for catastrophic damage as a result of the Gulf states disaster.