The International Group of P&I Clubs has announced several changes to its reinsurance contract that are aimed to offset the impact of rising reinsurance premiums.

The International Group, whose 13 members are some of the largest protection and indemnity marine insurance clubs, announced Friday that individual clubs' retentions will increase to $9 million for the 2013-2014 policy year from $8 million for the 2012-2013 policy year.

P&I insurance typically renews on Feb. 20 each year.

The International Group also said in a statement that, in order to offset premium increases sought by its reinsurers, the excess point on its general excess-of-loss reinsurance contract will increase to $70 million from $60 million, with the extra $10 million retained within the group pool that is reinsured by the group's captive Hydra Insurance Co. Ltd.

Bermuda-based Hydra reinsures $40 million excess of $30 million of the International Group's exposure.

In addition, the International Group said, Hydra's coinsurance share in the first layer of the group's general excess-of-loss coverage will increase to 30% from 25%.

For the 2013-2014 year, the International Group said it will introduce a three-layer pool structure for the general excess-of-loss program.

That structure will include a lower pool layer from $9 million to $45 million, an upper pool layer from $45 million to $60 million, within which there is a claiming club retention of 10%, and an upper upper pool layer from $60 million to $70 million, within which there is a claiming club retention of 5%.

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The International Group said in the statement that the 2011-2012 year had produced the group's first- and third-largest claims ever and had resulted in a large exposure for its reinsurers. This exposure, coupled with other concerns that include an increase in the costs of major casualties, had led the group's reinsurers to seek significant premium hikes, it said.

In the statement, Hugo Wynn-Williams, chairman of the International Group's reinsurance subcommittee, said that through use of the group's captive it had been possible to mitigate the full extent of the increased reinsurance cost to shipowners.