Diverse Insurance Group, Inc. 2801 sw 3rd ave F-8

Fort Lauderdale, FL 33315www.insurefloridians.com

954-605-2247 or (754)300-7352 Available Nights and Weekends

About D.I.G.

• Diverse Insurance Group (D.I.G.) is an S-Corporation established by industry leaders in the housing and insurance market. The combination of officers of a Non-Profit housing counseling organization and experienced underwriter/insurance agents provides our agency an added advantage in the market.

• Diverse Insurance Groups objective is to generate revenue in a challenged market by introducing a new business model to already struggling homeowners that have met all their obligations. Our corporation will be providing guidance, education, protection and quality service not usually met in today’s monetary world.

Company Officers • Mohammed Abid• Chief Operating Officer/Agency Principal of Diverse Insurance Group

• Mohammed Abid has carried his General Lines 2-20 for the past seven years. His experience in the insurance industry has included sales, claims and underwriting. In 2005 Mohammed was hired to head the inspection department for Citizens Property Insurance Company. There he developed guidelines and strategies to mold the department into what it is today.

As an underwriter he was able to garner the knowledge necessary to make renewal decisions on risks. He then combined all his experience to assist the claims department in renewal processing. Mohammed was able to not only review policies for issuance but also decline policies that he felt were a significant risk to the company. He is now excited to bring his experience to the other side of the fence and be able to assist consumers in making the right coverage decisions to protect their properties with Diverse Insurance Group.

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How does property/casualty insurance work, and how well does it work in dealing with natural disasters?

• Florida’s hurricane problem • The state role • The homeowner’s role

What is Insurance?

• Insurance is the system that enables us:• To transfer the cost of life’s tragedies from

ourselves to others...(Insurance Carrier)• By paying in advance...(Insurance Premium)• Based on the relative likelihood of loss Risk

transfer, not risk sharing• Insurance is all about low-probability events

How to Insurance Companies come up with premiums?

• For it to be economically viable there must be the ability to predict certain tragedies or catastrophic events.

• Example: Fire Insurance (A peril normally covered under a HO-3 or special policy form)

• There is a very small variance in the costs of damage from fire. • So lets just say there is a 0.1% of a chance in any given policy

term that a home will burn completely to the ground. • Due to the probability of a whole town burning down is almost

0% insurance companies are able to compute a probability and base their premiums on the cost of rebuilding the home resulting from a complete loss.

It Differs with Auto

• Insurance companies use a risk-based premium system.

• So companies cannot charge all drivers the same rate. ( Young drivers, At-fault accidents, Not-At fault accidents, Traffic tickets, Claims, Credit, Value of the vehicle, ABS brakes, Alarm system)

• As you can see the premium in auto insurance is based on many factors however it still is somewhat predictable( Low risk & High risk drivers)

Natural Disasters Insurance Premiums

• As we saw in previous slides companies can somewhat compute the probability of a risk vs. premium.

• However when it comes to natural disasters, specifically hurricanes in Florida. It is not as easy.

• A hurricane can completely wipe out a city, town, or damage parts of an entire state.

Natural Disasters Insurance Premiums contd.

• With these types of catastrophes there is no such thing as a average year. Some years produce huge losses( 1992 Andrew, 2005 Wilma) other years produce few claims and huge profits.

• However because there are years such as 1992 and 2005 companies must keep enough in reserve to make sure that all claims can be paid incase of a tragic hurricane.

Natural Disasters Statistics

• Florida is responsible for 49.5% of the nation’s average annual insured hurricane loss...$1.4 billion

• Texas is next, with $615 million, followed by Louisiana, with $196 million

• Florida leads the nation in the insured value of coastal residential property, with $942.5 billion

• New York is next, with $512 billion • Massachusetts, with $306 billion

Natural Disasters Statistics

• Frequent major hurricanes are not uncommon in our history:

• 1919-1935: one Category 5, three Category 4, three Category 3

• 1944-1950: one Category 4, seven Category 3• 40.5% of all hurricanes to hit the U.S. (38.5% of

all Cat 3, 4, or 5) made landfall in Florida– All of Florida’s Cat 4 or 5 storms, and 2/3 of Florida’s Cat 3 storms, made landfall south of I-4

Natural Disasters Statistics

• 6 of the 10 costliest hurricanes in U.S. history were Florida hurricanes– Andrew (1992), Wilma (2005), and the four 2004 storms

• Reruns of historic hurricanes would cause huge losses, given today’s housing patterns and property values

• The 1926 Miami Beach hurricane would cause losses of $130 or more billion today

• Andrew would cause losses of $50 billion • The Lake Okeechobee hurricane (1928) would cause

losses of $30 bill

What Wilma DID

• Hurricane Wilma–• Category 2 hurricane• Sustained wind speeds never exceeded 100

mph over land in Florida• Insured losses to residential property reached

$10 billion

8 Hurricanes in 2 years

• Costs: • 2004: Over $20 billion in residential insurance claims

(affecting about 1⁄4 of all Florida homeowners) • 2005: Over $10 billion in residential insurance claims• Revenues: • Annual premiums collected for homeowners insurance in the

private sector: $5.5 billion (2005) • Annual premiums collected by Citizens (2005): $1.5 billion• Note that these premiums are not just for hurricane damage,

but must also cover more traditional perils, such as fire, theft, and liability

Conclusion

• No Matter what coverage you are in need of Diverse Insurance Group can find you the best rate available.

• We are available Nights and Weekends. • A+ Carriers for Commercial, Personal and Life

and Health lines.• One on One coverage analysis of your current

policy.• Call US Today (9540 605-2247