Falling commercial premiums won’t have an immediate effect on insurers’ upcoming half-year results, according to JP Morgan analyst Shane Fitzgerald.

He told Sunrise Exchange News evidence of falling premium rates won’t make a mark on company reports because the drop is relatively recent.

Top 5 insurers are getting set to release their results for the second half of the financial year. Perth conglomerate Wesfarmers’ half-year results are due out today, while QBE will report on August 17. No 1 insurer IAG will report its results on August 19 and Promina’s results will be posted on August 25.

Mr Fitzgerald says the outlook for the commercial insurance market definitely indicates a downturn from what has been “a really high peak” but this won’t affect company bottom lines just yet.

“It will help colour the guidance statements given by companies for future profits results but it won’t impact on immediately upcoming results,” he said. “Definitely the consumer premium rates cycle has turned and that is because of very high competition.”

While the commercial lines market has been described as “hard” over the past few years, evidence of dropping rates and a greater market capacity saw brokers in the June 30 National Insurance Brokers Association survey rate the market at an average 3 out of 10 in terms of hardness – a vast contrast to previous years, where the majority of brokers rated the market at up to 8 out of 10 in terms of hardness.