The insurance industry could face record insured losses in 2011 after an unusually high number of hurricanes and tornadoes in the first six months has already made this the second costliest year for insurers, Swiss Re said today.

Industry insured losses from natural catastrophes sky-rocketed to an estimated $67 billion in the first half, more than twice the level in the 2010 period. Insured losses are those losses which insurers and reinsurers have to cover.

This would make 2011 second only to 2005, when hurricane Katrina ravaged New Orleans, Swiss Re said. In contrast, man-made disasters resulted in payments of only about $3 billion, similar to 2010, Swiss Re said.

"In terms of catastrophe claims, 2011 is already the second costliest year in history for the insurance industry," Chief Economist Thomas Hess said in a statement.

"Additional claims from the ongoing U.S. hurricane season or expensive winter storms in Europe have the potential to bring figures for the full year even closer to the record claims of $120 billion experienced in 2005."

The Japanese earthquake in March is likely to have caused an insured loss of $30 billion, Swiss Re said, with the total cost of the disaster likely to rise once damage to nuclear plants and the costs due to interrupting business are fully factored in.

German rival Munich Re in July gave an industry insured loss estimate of $60 billion, almost five times the first-half average since 2001.

Reuters