1. RiskMeter Storm Surge Overview Produced by CDS Business Mapping, LLC. ©Copyright 2007, CDS Business Mapping, LLC. All Rights Reserved.

2. Introduction Insurance companies, particularly commercial insurers, are concerned with coastal flooding Insurance companies, particularly commercial insurers, are concerned with coastal flooding Hurricane Katrina was more of a flood event than a wind event Hurricane Katrina was more of a flood event than a wind event Recent court rulings have held insurers liable for hurricane flooding even if not technically covered Recent court rulings have held insurers liable for hurricane flooding even if not technically covered

3. About CDS Storm Surge Model Model is based upon two different sources  SLOSH Model  Most well known storm surge model  State Storm Surge Contours  States have done work to map actual areas inundated by storm surge

4. What is SLOSH Data? Slosh predicts storm surge levels based upon different hurricane categories The data we used predicts storm surge heights at high tide   worst case scenario The heights shown are the surge heights above sea-level, not above the ground

5. Texas SLOSH Basins Overlapping basins

6. Slosh Basins-Long Island The label show surge heights for Cat 1, 2, 3, 4 The gray cells have no surge values There are cells which clearly would experi- ence storm surge, that have no values Eastern end of Long Island, NY

7. Surge Contours The problem isn’t as simple as it seems In this illustration, you can see that a location may be inland, but protected by a hill; but if the water is high enough, it may go over the hill (or levee – think Katrina) Just because SLOSH says the water is above the elevation of the location, this does NOT mean that the property would be inundated; topology matters

8. Surge Contours – Long Island Eastern end of Long Island, NY

9. What we’ve developed  We’ve combined the storm surge contours and SLOSH data  We’ve filled in the missing SLOSH cells  We give you the highest values from multiple basins (users do not have to select a basin)  If you combine this with the RiskMeter slope/aspect/elevation report, you can estimate the water depth at any location!  This gives the most complete picture of storm surge effects in an area available today, from anyone

10. Fields Returned  Minimum Hurricane Category  Surge Height Category 1  Surge Height Category 2  Surge Height Category 3  Surge Height Category 4  Surge Height Category 5  Notes

11. Considerations You will notice, in some cases, there are missing slosh values; we’ve developed a method to fill in these areas You will notice, in some cases, there are missing slosh values; we’ve developed a method to fill in these areas For the elevation contours, states may have used a different elevation dataset; this may cause minor inconsistencies For the elevation contours, states may have used a different elevation dataset; this may cause minor inconsistencies Some states are missing; we are building our own data Some states are missing; we are building our own data  missing states: MD, VA and Western LA From MD north, no Category 5 data exists From MD north, no Category 5 data exists CT has modeled Category 1 & 2 together CT has modeled Category 1 & 2 together Parts of FL have only modeled Category 1, 3 & 5 Parts of FL have only modeled Category 1, 3 & 5

12. How Big is the Problem? NY/Long Island Example

13. How Big is the Problem? New York/Long Island New York/Long Island Population living in a 100 year flood zone: 2,482,038 Population living in a storm surge area: 4,746,434 Population living in a storm surge area and not recognized as a 100 year flood zone: 2,936,639 Population based upon storm category: Population based upon storm category: Category 1: 238,355 Category 2: 524,434 Category 3: 962,823 Category 4: 1,211,027

14. How Big is the Problem? As you can see, in TX, storm surge extends tens of miles inland!

15. Conclusions Flood zones do not accurately identify storm surge risks Flood zones do not accurately identify storm surge risks By using the Storm Surge Model in conjunction with Elevation/Slope and Distance to Coast reports, you can estimate any property’s vulnerability to hurricane surge effects, even inland By using the Storm Surge Model in conjunction with Elevation/Slope and Distance to Coast reports, you can estimate any property’s vulnerability to hurricane surge effects, even inland You can set limits for policies based on this new information You can set limits for policies based on this new information  i.e. For properties within 2 miles from the coast, you will not write properties in zone 1, 2 or 3  Surcharge policies that fall within storm surge areas The CDS Storm Surge Model is the best and most comprehensive model available to predict possible storm surge effects / flooding from hurricanes The CDS Storm Surge Model is the best and most comprehensive model available to predict possible storm surge effects / flooding from hurricanes

16. Contact Information If you have any questions, please contact: Dan Munson Vice President of Sales & Marketing 617-737-4444dmunson@cdsys.com