coverage from Bermuda catastrophe reinsurers, according to an article in the October 31 issue of Business Insurance.

The publication claimed rates may be reduced by more than 15 percent for regional US programmes unaffected by the Northridge earthquake in Los Angeles while many reinsurers are seeking aggregate coverages to lessen the effects of higher retentions imposed over the last two years.

Bermuda cat reinsurers are expected to take on some new business programmes though the capacity for new North American accounts continues to be limited.

But large scale rate reductions are not likely while aggregate coverages or other policies like casualty may result.

Bermuda underwriters are able to take on new business and that will put pressure on some rates, according to Robert O'Leary, chief operating officer of Willcox Inc. in New York. Despite claims earlier this year that Bermuda reinsurers have little room for more capacity, Mr. O'Leary, in the Business Insurance article, said he believed some new accounts will be placed in the Island market.

Underwriters in Bermuda are expecting brokers to want lower rates with good loss records, according to CEO at Bermuda-based Global Capital Reinsurance Ltd. Mr. Doyle said he expects rates to be stable for those people with large exposures in California.

But Mr. Paul Hasse, CEO of Bermuda-based Centre Cat said he sees cedant's rates in California increasing.

Meanwhile, Mr. John P. Dowling, president and CEO of International Property Catastrophe Reinsurance Ltd. said it was too early to tell what the rates will do.

Renewals should feature aggregate coverages designed to reduce pressure on with large retentions.

Aggregate coverages are a possibility if they are purchased if bought as a separate coverage, commented Mr. Guy Hengesbaugh, executive vice president and chief underwriter at LaSalle Re Ltd. based in Bermuda. He added LaSalle might give an aggregate excess but only as a separate policy with a capacity of around $3 million per programme, he added.

Aggregate coverages could lead to large losses for cat reinsurers with clients experiencing several losses in the same area, he cautioned.

LaSalle Re will offer some casualty clash coverage -- only about two percent of its premiums are anticipated to come from that area. Bermuda reinsurers will continue to focus on property catastrophe reinsurance.