Home and commercial property insurance rates are expected to stabilise this year, according to three of the Island's major domestic insurance companies.

Worldwide property insurance premiums have climbed significantly over the past few years -- in 1993 the local market announced it would hike rates 20 percent with some commercial rates increasing much higher -- as reinsurance companies, hit hard by hurricane-related claims, commanded higher premiums from their clients, insurance companies.

The increases felt in Bermuda were directly linked to the hurricane (wind storm) component of the homeowners policy, according to the companies, but the market seems to have levelled, according to the local insurers.

"Generally speaking, from a Bermuda point of view, business and private rates have stabilised,'' said Mr. John Sainsbury, managing director of Argus Insurance Company Ltd.

Argus, like many insurance companies who often insure against large risks by purchasing reinsurance, has negotiated a 1995 reinsurance programme "similar'' to last year's, he said.

"But there is an ongoing look at (rates) and I can't say that absolutely no one in Bermuda will see a change in rates...by now everyone should be caught up...any notices of increases are the tail end of the effect of last year,'' he said.

In 1993, "most of us found the reinsurance market unified, and that brought local companies into line,'' Mr. Sainsbury said.

Mr. Glenn Titterton, president and chief executive officer at BF&M Ltd., the company which holds the largest percentage of the Island's household insurance policies, said "reinsurance rates are consistent with last year. I would be surprised if local policy holders saw a dramatic increase in rates in 1995.'' There is no effort to align the Island's rates with those of the Caribbean, he commented.

"Bermuda maintains an excellent premium rate compared to the Caribbean.

Homeowners pay about 4.5 per mill, or $4.50 for every $1,000 of property insured, while in the Caribbean the rate ranges from $12-$15 per $1,000,'' he said.

He also cited that Bermuda homeowners' premiums rates are only five percent higher now than they were in 1979. There have also been decreases in rates since 1979 which have contributed to a lower overall cumulative increase.

"We tend to focus on the increases, not the decreases in rates,'' Mr.

Titterton commented.

Commercial rates have stabilised, he added.

BF&M has also completed its reinsurance programme for 1995.

Meanwhile, Mr. Alan Peacock, managing director at Colonial Insurance Company Ltd., also said he expects upcoming household renewal rates to "stay about the same as last year.

"The reinsurance market is obtaining a premium they feel is realistic, people have to accept the rates as more realistic,'' he added.

Colonial has not yet completed it reinsurance programme. But, noted Mr.

Peacock, the company's year-end is January 31.

There are other factors associated with household coverage, like theft and fire, but those components have not impacted the overall rate, noted Mr.

William Madeiros, general manager at Colonial.