CDS would like to extend our thoughts and prayers to anyone who has been affected by the southern California wildfires. We are currently in the process of making fire perimeter maps for southern California and we should have more information about these maps in the November newsletter.

For carriers in catastrophe prone states, reinsurance can be the largest expense. The biggest factors in setting these prices are Probable Maximum Losses (PML's) calculated by the catastrophe modeling firms. In these calculations several building characteristics are used, including: year built, number of stories, roof shape, and more.

Unfortunately, many carriers have not collected and stored this information on their policies. When calculating PML's, if the information isn't provided, the modelers must make assumptions. In these cases, since the companies are looking for worst case scenarios, they will penalize a carrier that does not have this information for each policy. If the carrier had the information, in most cases, this would lower their PML's and reinsurance costs, because actual information would be used, as opposed to assumptions. Therefore it makes sense to append and store this information.

For reinsurers, appending this data can be a tremendous competitive advantage as well. Uncertainty in the models has a negative affect on everyone. Even if a customer or broker does not have this information in their policy file, it is worthwhile for the reinsurer to collect and pay for this data. Why? Because by having the data on each policy, reinsurers can reduce uncertainty, and therefore better price risk. So theoretically, the reinsurer with this information can under-price competitors and still know that they will make a profit because of better information. This will lead to more business and higher profits for the reinsurer, even though they are giving lower prices to the carrier!

CDS can append this information to new policies using the RiskMeter Online, or in a batch for your current book. You simply provide a file of your policies and we can append year built, square footage, number of stories and more! Contact Dan Munson at 617.737.4444 or dmunson@cdsys.com to discuss your needs.

CDS is also looking at collecting this data where public data doesn't exist. For instance, determining roof shape from aerial photos, checking for pools using aerial photos, etc. Call CDS if you are interested in this information.

The South Carolina Department of Insurance has issued a data call for personal lines business, including dwelling, tenant, condo and mobile-homeowners and commercial business including BOP and SMP. Farm policies are excluded. The first report is due at the department no later than November 15, 2007 covering the months of January through September for the current and prior years. The DOI is looking to monitor exposures within the wind pool eligible areas and CDS can help.

These windpool areas are available on the RiskMeter Online for insurers who need this information for renewals, new business and cancellations. To add this report to your account or for more information about running a batch of your current in-force policies, please contact Jamie Munson at 860.854.6125 or jmunson@cdsys.com

The distance to fire station is a rating factor with a very big impact on premiums that is rarely verified by the carrier. According to our sources, having a location more than 5 miles from the fire station can add $500-$600 in premium, or up to 40% on a single policy! So verifying the distance to fire station and calculating the proper premium, can add significant money to your overall premiums. If you are not checking the distance, you may be effectively giving the insured a 40% discount that he/she is not entitled to!

Solving this problem is easy. The RiskMeter Online can calculate the distance to the nearest fire station in real time. The distances returned are routed distances using roads, not a "crow's fly's" distance. Additionally, if you gave CDS all of your policies in areas with split fire ratings, CDS can tell you which ones are more than 5 miles away, and thus should get the higher class. Think of the profits that you could make, by simply rating the policies properly, without having to write one more piece of new business!

For more information, please contact Jamie Munson at jmunson@cdsys.com or 860.854.6125 for more information.

With the real-estate market cooling off and the credit crunch tightening, the number of foreclosures across the country is skyrocketing. Insurers are now starting to worry about vindictive homeowners damaging their homes. CDS is considering adding foreclosure data to the RiskMeter Online so insurers can take proactive steps to ensure homes won't get damaged. Before we add this data to the RiskMeter Online, we'd like to gauge your interest by having you send comments to Daniel Munson at dmunson@cdsys.com

Polling for Financial Insights and Tech Decisions 2nd Annual Insurer's Choice Awards is now underway. They are looking to salute the top insurance technology providers.

CDS needs your help! We would appreciate it if you would take the time to fill out this survey and nominate the RiskMeter Online. To take the survey, please go to:

http://www.financial- insights.com/FI/services/insurerschoice.jsp

CDS will be attending or exhibiting at the following upcoming conferences. Whether you're a customer or prospect, we'd love to meet with you onsite at these exceptional events! Feel free to stop by our booth or if you wish to schedule an appointment, please contact Dan Munson at 617.737.4444 (dmunson@cdsys.com) or Bradley Sherwin at 617.737.4444 (bsherwin@cdsys.com)

Property Insurance National Conference
November 10 - 13, 2007 *Dana Point, CA

AAMGA Mid-Year Meeting
November 14 - 18, 2007 *Naples, FL

In order to help you utilize the RiskMeter Online more effectively, we are now offering FREE Online training. This is a great way for your organization to have its most pressing questions answered, learn about reading various risk reports and discover how to utilize cutting-edge features, such as: Birdseye Geocoding, One Click Ruler and Manual Placement. To register for an upcoming Webcast, click on one of the links below or for more information, contact Angela Sciola at 617.737.4444 or asciola@cdsys.com

National Risks
Thursday, November 1, 2007
2:00 pm- 3:00 pm (EDT)
https://cdsys.webex.com

Western Risks
Thursday, November 8, 2007
2:00 pm- 3:00 pm (EDT)
https://cdsys.webex.com

National Risks
Wednesday, November 14, 2007
2:00 pm- 3:00 pm (EDT)
https://cdsys.webex.com

Western Risks
Tuesday, November 20, 2007
2:00 pm- 3:00 pm (EDT)
https://cdsys.webex.com

National Risks
Tuesday, November 27, 2007
2:00 pm- 3:00 pm (EDT)
https://cdsys.webex.com

Would you like the opportunity to evaluate any one of our risk reports without obligation? Now you can! For a limited time you will be able to test-drive any RiskMeter Online report for FREE! Take advantage of this exceptional opportunity to see how a particular risk report can benefit your organization. To add a FREE, one-month risk report to your account, please call 617.737.4444.

Carriers

• Cypress Insurance Group
• Gulfstream

• Next Wave Insurance

• Chibbaro Brothers
• Coastal Plains Insurance
• Totem Agencies

Having a hard time managing your inbox? You can now receive the RiskMeter eNewsletter via regular mail. To get the latest issue of the RiskMeter newsletter delivered to your office (when it becomes available), please email Paul Ptashnick at: pptashnick@cdsys.com

Angela Sciola, Support, Training and Customer Service
Tel: 617.737.4444
Email: asciola@cdsys.com

Daniel Munson, Founder and VP of Sales & Marketing
Tel: 617.737.4444
Email: dmunson@cdsys.com

Jamie Munson, Director of Consulting Services
Tel: 860.854.6125
Email: jmunson@cdsys.com

Bradley Sherwin, Sales Manager
Tel: 617.737.4444
Email: bsherwin@cdsys.com

Dave Poitras, Account Executive
Tel: 617.737.4444
Email: dpoitras@cdsys.com

If you would like more information on any of the topics discussed in this newsletter, please contact Dan Munson, VP of Marketing & Sales at: 617.737.4444 or dmunson@cdsys.com

Please forward this free newsletter to a friend or colleague who might benefit from it. We only ask that you send the entire newsletter. Thanks!

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