American Association Of Insurance Services (AAIS)

The American Association of Insurance Services (AAIS) was founded in 1975 and develops insurance policy forms and loss experience rating information that property and casualty insurance companies use. AAIS provides information to more than 700 insurance companies of all sizes that helps them with policy development, actuarial analysis, automation, regulatory paperwork and professional training. AAIS is not an insurance company.

For decades, the American Association of Insurance Services (AAIS) has been licensed as a statistical agent in 51 jurisdictions for all types of property and casualty lines. They collect data that helps its members meet regulatory statistical reporting responsibilities, serving as an intermediary between carriers and insurance regulators. Transaction data also supports loss cost development and rate-making activities. AAIS products and services are complemented by value-added offerings made available through special relationships with partners, data and technology firms, claims and risk management companies, reinsurance, and other services that support improved product development, underwriting, policy administration, and speed to market.

The AAIS provides information to personal, commercial, agricultural and marine insurers. For example, it provides homeowners insurance companies with model forms that describe what the homeowners policy covers, what it excludes, and whether it provides actual cash value, replacement cost, modified replacement cost or functional replacement after a loss. AAIS updates its model forms as changes occur in the market, such as changes in exposure, claims and lawsuits, to help insurers continually protect themselves. In the wake of increased mold claims under homeowners insurance policies, for example, AAIS developed modified policy language to help insurers limit their exposure to mold losses. Similarly, AAIS works to identify new sources of risk to insurance companies before widespread claims occur so insurers can choose not to cover these risks or to charge more to cover them. Insurers can use these forms as the AAIS provides them or customize them when issuing policies to consumers.

AAIS also collects data from participating insurance companies to provide insurance companies with information on claims that insurers have paid in the past (loss histories) to help them decide how much to charge consumers in premiums and what types of perils to cover. Insurers need to know that the premiums they’re charging are high enough to reflect the risks that they’re covering and high enough to allow them to pay out their customers’ claims. AAIS also provides insurance companies with statistical information about property, general liability, and automobile insurance that helps them decide what new insurance products to offer and what states to offer insurance in. This information can help insurance companies remain competitive in the insurance marketplace.