(15 Points) This question pertains to Porter's Five Forces. A. (8 points) We have discussed Porter's Five Forces throughout the semester. Based ONLY on what you see in the above table, what conclusions might you draw about the Five Forces? This question is NOT a library research project. Use only your class notes, the textbook and the Table to answer the following questions. Based ONLY on what you see in the above table, what conclusions might you draw about the Five Forces and the Texas Medical Professional Liability Industry? Do any of the Five Forces stand out for the industry? If you cannot draw conclusions about one or more of the Five Forces from the table, that is ok. Your discussion should conclude with an overall assessment of the attractiveness of the industry. B. (7 points) We have discussed Porter's Five Forces throughout the semester. Based ONLY on what you see in the above table, what conclusions might you draw about the Five Forces? This question is NOT a library research project. Use only your class notes, the textbook and the Table to answer the following questions. Based ONLY on what you see in the above table, what conclusions might you draw about the Five Forces and the Texas Private Passenger Auto Liability Industry? Do any of the Five Forces stand out for the industry? If you cannot draw conclusions about one or more of the Five Forces from the table, that is ok. Your discussion should conclude with an overall assessment of the attractiveness of the industry. TEXAS Commercial Lines Commercial Auto Liability Commercial Auto Physical Commercial Auto Total 3,172,601,217 31.55% 466 968,604,839 31.90% 456 4,141,206,056 30.52% 448 Commercial Multiple Peril Fire 2,799,323,649 28.86% 405 Allied Lines Inland Marine 1,755,094,416 39.08% 601 1,819,979,967 36.18% 119 713 Mortgage Guaranty Financial Guaranty Medical Professional Liability Other Liability Workers Compensation 2,327,680,463 41.20% 722 430,307,383 79.00% 1,865 15,901,672 100.00% 4,779 340,622,174 56.93% 1,078 5,454,039,513 25.65% 328 222 2,519,184,144 61.21% 2,074 312,502,645 28.68% 441 65 (6A) (6B) (7A) (7B) Market (2) (5A) (5B) Growth: Market (3) Number Number Market Risk Risk (8A) (8B) Growth: Retention Retention Surplus Surplus (9) Group Group Lines Lines Return Shares: HHI (4) of (1) Premiums Four Based Number Entries: Exits: of Years 2015 Largest on of Last 5 Last 5 to Written Sellers Premium Sellers Years Years 2018 Years 2009 to 2018 Market Market Market Market Shares: Shares: Shares: Shares: Worth Latest 5-Year Latest 5-Year 10-Year Year Mean Year Mean Mean on Net 129 44 42 114 28 32 136 46 43 38.83% 100 27 34 4.67% 34 43 10.32% 117 37 42 -0.52% 138 35 48 17.24% 96.59% 8 0 1 13.46% 4 0 3 75 29 65 97 36 14 3622 35 67 37 27 39.45% 110.50% 0.82% 1.28% 36.82% 111.81% n/a n/a 110.81% 0.63% 0.98% 37.80% 0.00% 0.00% 20.54% 0.00% 0.00% 83.14% n/a n/a n/a n/a 0.97% n/a n/a 11.31% -77.80% n/a n/a 15.35% -1.24% 8.11% 7.69% 12.06% 58.93% 1.10% 1.13% -8.12% 15.27% n/a n/a 4.93% 57.66% 0.01% 0.12% 5.55% 4.77% 1.63% 5.63% 4.72% 0.45% 5.57% 4.76% 1.45% 15.00% 14.32% 2.96% 20.48% 22.89% 17.24% 22.62% 22.72% n/a 5.18% 6.06% 16.56% 0.00% 0.00% 0.00% 9.20% 38.32% 34.73% 18.11% 34.53% 35.18% 8.17% 0.00% 0.00% 10.05% 39.96% 38.67% 12.35% 0.00% 31.95% Products Liability Personal Lines Private Passenger Auto Liability Private Passenger Auto Physical Private Passenger Auto Total Homeowners Multiple Peril Farmowners Multiple Peril Earthquake 12,724,233,293 49.92% 9,952,252,887 52.20% 22,676,486,180 50.92% 860 9,447,668,085 52.73% 870 351,009,339 83.78% 3,562 33,530,428 42.59% 708 F ! 22236 335 835 77 28 903 76 25 79 30 37 87 37 24 16 4 27 22 31.40% 72.55% 27.13% 71.02% n/a n/a 29.49% 71.88% n/a n/a 18.18% 68.34% n/a n/a 23.15% 148.14% n/a n/a -6.09% 10.79% n/a n/a n/a n/a 0.00% 0.00% 3.48% 0.03% 0.02% 3.87% 0.01% 0.01% 3.63% 1.06% 1.06% 7.42% 0.19% 0.19% 5.76% 60.64% 53.29% n/a Total Total All Property and Casualty Lines 58,712,809,382 28.93% 363 388 119 126 19.46% 61.25% 0.19% 0.22% 6.52% 6.92% 5.97%