Oil insurance Ltd., which was hit last year with $2.8 billion in claims from the record 2005 hurricane season, may raise its aggregate limits ? the maximum amount it will pay out on claims from a single event ? for non-windstorm exposures beginning in 2007, according to a statement from the company.

OIL, which is owned by its customers in the energy industry, said it may also increase premiums for customers whose businesses are likely to be exposed to hurricanes following a meeting of shareholders last week.

OIL cuts its aggregate limit for all events from $1 billion to $500 million in June after the limit was breached twice in 2005, first by Hurricane Katrina and then by Hurricane Rita.

At a special meeting of the mutual's shareholders held this week, members considered new ways to cover Atlantic windstorm risks within the mutual pool?including a proposal to shift a higher percentage of risk premium burden to those shareholders who bring hurricane exposures to the pool.

"There will be no immediate change to the current aggregation limit of $500 million for all losses incurred by OIL shareholders for a single event," OIL said in a statement. "However, shareholders may reasonably expect that the board will consider increasing the aggregation limit to $750 million as of Jan. 1, 2007, for nonwindstorm exposures when it next meets in December 2006."

OIL was downgraded last year to A- from A+ by New York-based Standard & Poor's Corp. It has approximately $1.8 billion in shareholders equity and 83 energy industry members.