According to the firm the year was exceptional in terms offatalities and losses. And the reinsurer noted statisticsconfirming a trend toward an increase in the number and costs ofnatural catastrophes and man-made disasters.

Swiss Re's latest sigma study, "Natural catastrophes andman-made disasters in 2008," said there were 137 naturalcatastrophes and 174 man-made disasters which occurred in 2008.

In terms of lives lost, the firm said Asia suffered the most,while the United States was worst hit in regard to insured propertylosses and Europe was less impacted with only minor losses.

Natural catastrophes cost property insurers more than $44.7billion, said the reinsurer, with high U.S. catastrophe claimsdriven by Hurricanes Ike and Gustav as well as thunderstorms duringthe first half of 2008.

Europe's losses, down from the previous year, were calculated asslightly more than a tenth of the world total in 2008, largely dueto lower storm and flood damages.

In early 2008, Swiss Re said China suffered losses amounting tomore than $1.3 billion driven by an unusually cold winter withrecord amounts of ice and snow and more than $7.8 billion forman-made catastrophes.

Major man-made disasters caused $7.8 billon in losses in 2008,with large-scale industrial fires, explosions and losses in theenergy sector at the top of the list. Man-made catastrophesresulted in 5,600 deaths in 2008; shipping and boating accidents aswell as bombings and social unrest caused the most casualties.

The company said the extremely high losses in Asia are likely tospur a need for insurance.

Total damages to the economy worldwide in 2008 amounted to $269billion, said Swiss Re. It attributed almost half this amount tothe earthquake that struck China in May, which it said caused coststo the economy of $124 billion, or approximately 3 percent ofChina's gross domestic product.

Given the rapid development of income and wealth in Asia, SwissRe said the financial exposures will swiftly rise and are likely toincrease a focus on prevention and ex-post disaster management aswell as development of insurance as a tool for coping withfinancial consequences of catastrophes.

In the future, Swiss Re said it expects insurance in Asia willplay a more important role, but such development will take timegiven the high percentage of Asians with low incomes.

The firm called public-private partnerships critical to thedevelopment of effective and accessible insurance solutions.

According to the reinsurer, global and regional insurers andreinsurers play an essential part in the further establishment ofinsurance in Asia, by sharing their knowledge and expertise and byhelping to absorb the area's rising risks.