Sector's cash flow suggests hard market in 2008; finite re probes hasten cycles
The power to predict property-casualty pricing cycles accurately has long eluded the best minds in the industry–but analysts at Cochran Caronia & Company have developed a technique that might be quite useful for anyone trying to guess where prices are headed.
We believe cash flow is a reliable tool to predict pricing cycles, and based on current industry conditions, we're predicting a significant drop in industry cash flow in 2006, and the bottoming out of the pricing cycle by 2007.
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