Leading Lloyd's of London insurer Amlin is calling the bottom of the insurance market, predicting that rates will rocket this year.

An ill wind: Hurricane Ike helped make last year one of the costliest ever for insurers.

The cost of property, marine, aviation and other types of catastrophe insurance will soar as insurers take a cautious approach to managing risk in the wake of the global financial crisis.

More general products such as car insurance are also likely to jump in cost. General insurers say rates could be up 20% this year.

With rivals pulling out of key markets after taking a battering on hurricanes and tumbling stock markets, strong players such as Amlin could cash in.

"The impact of last year's hurricane activity and the recent dislocation in capital markets has started to drive firmer reinsurance rates, reversing last year's falling trend," the company said today in a trading update.

Amlin chief executive Charles Philipps believes this year will see a "cut-throat" approach to writing premiums - no one will be chasing market share at the expense of profits, he claims.

"We are through the bottom of the insurance cycle with strong prospects for hardening rates across our business," he said. Commercial insurers could be winners from the credit crunch as financial companies look to protect balance sheets.

"It has dawned on the sector that they need to be disciplined. The fallout from the banking crisis has reminded people that they need to price things properly," he said.

Last year was the second costliest for disaster underwriters - Hurricane Ike alone cost $20 billion (£13.2 billion) in payouts.

In the fourth quarter Amlin made a return on its £2.6 billion of funds under management of 0.6%, despite the turmoil in world stock markets.

The part of Amlin's portfolio invested in shares - 9% - fell 26.5%.

Amlin took premiums of £1.02 billion in 2008, 2% down.

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