What is the American Association of Insurance Services (AAIS)
The American Association of Insurance Services (AAIS) was founded in 1936 and develops insurance policy forms and loss assessment information that property and damage insurance companies use. AAIS provides information to more than 700 insurance companies of all sizes that helps them develop policies, actuarial analysis, automation, regulatory formalities and professional training. AAIS is not an insurance company.
BREAKDOWN American Insurance Services Association (AAIS)
For decades, the American Association of Insurance Services (AAIS) has been licensed as a statistical agent in 51 jurisdictions for all types of P&C lines. They collect data that helps its members meet their regulatory statistical reporting responsibilities, serving as an intermediary between carriers and insurance regulators. Transaction data also supports loss costing and pricing development activities. AAIS products and services are complemented by value-added offerings made available through preferred relationships with partners, data and technology companies, claims and risk management companies, reinsurers and other services that support improved product development, underwriting, policy administration and speed to market. .
Use of American Association of Insurance Services Data
AAIS provides information for personal, commercial, agricultural and marine insurers. For example, it provides home insurance companies with sample forms that describe what the home policy covers, what it excludes, and whether it provides actual cash valuereplacement cost, modified replacement cost or functional replacement after a disaster. AAIS updates its model forms as changes occur in the market, such as changes in exposure, claims and lawsuits, to help insurers protect themselves continuously. Following the increase in mold-related claims on home insurance policies, for example, AAIS developed modified policy language to help insurers limit their exposure to mold losses. Likewise, AAIS works to identify new sources of risk for insurance companies before widespread claims occur so that insurers can choose not to cover these risks or charge more to cover them. . Insurers can use these forms as provided by AAIS or customize them when issuing policies to consumers.
AAIS also collects data from participating insurance companies to provide insurance companies with information about claims insurers have paid in the past (loss histories) to help them decide how much to charge consumers. bonuses and what types of perils to cover. Insurers need to know that the premiums they charge are high enough to reflect the risks they cover and high enough to allow them to pay their clients’ claims. AAIS also provides insurance companies with statistical information on property, general liability, and automobile insurance that helps them decide which new insurance products to offer and in which states to offer insurance. This information can help insurance companies stay competitive in the insurance market.
