A section of a ravaged classroom at Donald Quarrie High School in east Kingston. Damage to school infrastructure attributed to Hurricane Dean has been billed by Jamaican authorities at $700 million. - Ian Allen/Staff Photographer

ZURICH, Switzerland (AP):

The global reinsurance industry will have to pay out US$35 billion this year to cover the cost of natural disasters such as flooding in Britain and Hurricane Dean in the Caribbean, Swiss Reinsurance Co. said yesterday.

The world's largest reinsurer said the steep rise from last year's payments of US$12 billion reflects a "long-term trend towards high natural catastrophe claims".

Reinsurance companies sell backup coverage to other insurers, spreading risk so the system can handle huge losses from major disasters.

European winter storms alone cost the industry over US$5 billion, Swiss Re said.

Floods in Britain during June and July led to claims between US$4 billion and US$7 billion. Hurricane Dean, which hit Mexico and the Caribbean last month, caused insured damage of over US$1 billion.

Swiss Re cited an additional US$1.2 billion in property-related claims from storms and floods in the United States this year.