After years of declining workers compensation rates, experts say the comp market is slowly starting to firm—though most say the languid economy is still holding prices relatively steady.

Renewal prices for most workers comp policies have stayed flat or increased less than 10% on average nationwide, said Pamela F. Ferrandino, casualty practice leader, placement for Willis North America in New York.

Cubic Corp. saw a nearly 2% increase in its rate when it renewed its workers comp policy this fall with Chicago-based CNA Financial Corp., said Dominic Zullo, director of risk management for the San Diego-based defense and transportation contractor.

Mr. Zullo noted that CNA and other insurers who provided quotes appeared less willing to budge on price, though Cubic initially expected an increase of 5% to 10%.

“I didn't see the marketplace being as aggressive this year,” he said.

In California, some employers are seeing guaranteed rate increases of 16% to 25% when experience modification rates are factored in, said Jamie Knoop, senior vp of the construction services team for Lockton Cos. L.L.C. in Irvine, Calif. That's after the state's Department of Insurance approved a nearly 36% increase in its advisory pure premium rate for 2012.

About 10% of employers nationwide still are seeing year-over-year rate reductions, including global companies that can handle large self-insured retentions for their workers comp programs, said Ms. Ferrandino.

Though insurers largely have been able to push for higher rates on recent renewals, workers comp prices remain relatively soft, said Tom Fitzgerald, chief broking officer for commercial risk at Aon Risk Solutions in Chicago.

“Insurers are, in my opinion, walking that razor edge of trying to price to expected losses and make a profit,” Mr. Fitzgerald said.

Accident Fund Insurance Co. of America in Lansing, Mich., has seen rates increase 3% to 4% for recent comp renewals. Much of that has been driven by the insurer's focus on customer segmentation, said Al Gileczek, the insurer's vp of business development.

“It is a market that's bottomed out and is showing some signs of tightening,” Mr. Gileczek said. “But by no means would I call it a hard market.”

David Sandler, New York-based president of general casualty and chief operating officer of Chartis Inc.'s commercial casualty unit, said the rate environment is driving insurers to offer more favorable terms for large-deductible policies than for guaranteed-rate policies.

Guaranteed workers comp policy prices for Chartis are up about 6% from last year, while large-deductible policy rates for the New York-based insurer are up between 3% to 5% for jumbo employers and 10% to 12% for smaller firms.

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Insurers are “less willing to offer (guaranteed cost policies) without some other supporting business that's more profitable, or maybe they just price the business where they give you a deductible option that's very attractive relative to their guaranteed cost price,” Mr. Sandler said.

More employers are starting to consider high-deductible policies as they look to control comp costs, sources say. However, most companies still opt for guaranteed cost programs.

Firms are leery of collateral requirements for high-retention policies—especially as the economy has left many companies with a need for open credit and cash on hand, said John Lewis, Kansas City, Mo.-based senior vp of excess placement at Lockton.

“Their lines of credit are so tied up right now, that it's just difficult for them to do” high deductibles, Mr. Lewis said.

Cubic's Mr. Zullo said his company was able to hold the line on its collateral requirements with CNA last year, due in part to Cubic's strong balance sheet and a nearly 10-year track record with the insurer.

The company uses a large-deductible policy to cover its 6,000 domestic employees and a guaranteed-cost policy for nearly 3,000 foreign workers.

“They've taken the extra step for us to understand we don't want to tie up a lot of collateral in terms of letters of credit, which could potentially have an effect on our ability to secure new business,” Mr. Zullo said.

Sources say they expect workers comp pricing to continue firming through 2012 and beyond.

“The market is far enough underwater that there needs to be a correction for a fairly...significant period of time,” Mr. Sandler said.