Primary and excess casualty buyers saw price hikes this insurance renewal season, with the largest increases for workers compensation coverage.

New York-based Marsh Inc. said more than half of its U.S. clients experienced rate increases for general liability and workers compensation coverage in the fourth quarter of 2012. Buyers of general liability insurance saw typical rate changes of up to 10%, according to the report.

Still, buyers with low to moderate hazard risks and favorable loss histories saw flat renewals of their casualty coverage and, in some cases, rate reductions.

“We were 100% flat across the board — general liability, auto liability — the whole kit and caboodle,” said Christopher Johnson, director of risk management at Northwestern University in Evanston, Ill.

Remaining with the same casualty underwriters for many years, Mr. Johnson said the university's insurers fully understand its risks and work to mitigate them.

“Because our loss history has been pretty favorable across all lines, they are not looking to fine-tune our coverage,” Mr. Johnson said.

Compared with last year, casualty insurance rates are up 5% to 10% on average, experts say.

“Casualty is unlike other lines of insurance; it's more industry-driven and hazard-class driven,” said Tony DeFelice, New York-based national casualty practice managing director at Aon Risk Solutions.

“The more high-hazardous classes are under more pressure than others,” Mr. DeFelice said. Such industries include energy, chemicals, life sciences and railroads, all of which have seen double-digit rate increases, he said.

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There's also been pressure in the past year on attachment points for umbrella coverage, forcing large-fleet commercial auto buyers to either buy a buffer or assume a higher self-insured retention, Mr. DeFelice said.

Workers compensation has seen the most drastic increases, with average pricing rising 5% to 10% depending on the industry, loss experience and state mix, said Kevin Brogan, head of national product practices and special risk for Wells Fargo Insurance Services USA Inc. in Chicago.

Buyers with poor loss histories and large guaranteed-cost work comp programs are seeing increases of 25% to 40%, Mr. Brogan said. “It happens weekly,” he said.

Average increases of 5% on general liability and commercial auto liability coverage may be due to losses in the workers comp lines, experts say.

With workers comp underwriters facing unprofitable combined ratios between 115% and 125%, “they try to spread some of their increases on other lines of business to balance it,” Mr. Brogan said. “I think that's a lot of what's going on with the GL and the auto” markets.

Key factors that are trending the comp rates are that severity has spiked for several years, stricter state regulations, and underwriters are trying to adjust for the inflationary effects of medical costs, experts say.

“Underwriters are absolutely focused in terms of correcting that book of business,” Aon's Mr. DeFelice said. “The combined ratio speaks for itself that they need to correct that book.”

While capacity continues to be readily available, underwriters are starting to firm on terms and conditions.

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“Most carriers are somewhat reticent to offer multiyear deals to customers now,” said Brian Winters, executive vice president of casualty for Zurich Global Corporate in North America in New York. “Any term or condition that affects rate, per se, is probably looked at fairly stringently.”

To ensure successful renewals, buyers need to keep an eye on losses, Mr. Winters said.

“The frequency of the losses is an area that they need to drive down to be able to control their overall cost” by partnering with risk engineering and other kinds of safety services, he said. “If they do that, rates, particularly on workers comp, will stay modest.”

If there are losses, “the best way to have good results with carriers is to put together partnerships with your broker, with your insurance company or with a carrier you're thinking about going with to reduce losses and identify where they're coming from,” WFIS' Mr. Brogan said.