Swiss Re says insurance and reinsurance rates rose significantly during the January renewal period. US companies are paying an average 5%-20% more for property coverage and up to 40% more for liability cover.

Reinsurance rates were also up sharply in January, offering a sign of hope for Swiss Re and its rivals.  The No 2 reinsurer expects to post its first annual net loss in 135 years when it reports its 2001 figures next month.

The company’s chief underwriter in the US, Mark Lescault, said the hard market will remain for at least two more years.

Swiss Re said insurers and reinsurers will pay out $US19 billion for property and business interruption claims from the September 11 terrorist attack(s), plus between $US16.5 billion to $US39 billion in related liability claims. That would put the total claims for September 11 in the range of $US35 billion to $US85 billion.