American Association of Insurance Services - Explained
What is the American Association of Insurance Services?
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Back To: INSURANCE & RISK MANAGEMENT
What is the American Association Of Insurance Services?
The American Association of Insurance Services refers to an organization that deals with the development of insurance policy forms and information to do with experience rating that casualty and property insurance companies use. The organization provides information to over 700 insurance companies. It helps these companies with actuarial analysis, policy development, regulatory paperwork, automation, and professional training. The AAIS organization was established in 1930 first as the Chicago-based Transportation Insurance Rating Bureau, focusing mainly on inland marine insurance. In 1975, its name was changed, and its scope broadened in order to accommodate other insurance products.
What Does the American Association Of Insurance Services Do?
It is important to note that AAIS is not an insurance firm. It is an organization whose advisory programs focus on Best in Class forms, loss costs, and rules. Using a collaborative approach, AAIS develops and delivers solutions that are customized for each of its members. Through the programs they offer, AAIS empowers its members with flexibility and confidence. The organizations forms and rates can, therefore, be geared towards target clients and become the base for excellent differentiation, underwriting, as well as a competitive advantage. The AAIS has been for decades licensed as a statistical agent in fifty-one jurisdictions for all kinds of property as well as casualty lines. AAIS provides the following services to its members:
- It collects data that assist its members in carrying out responsibilities associated with regulatory statistical reporting
- It acts as an intermediary between insurance regulators and carriers
- It uses its transaction data to support rate-making activities and loss cost development
- AAIS services and products are complemented by value-added offerings to support improved product development, policy administration, underwriting, and speed-to-market. It does this through special partner relationships including and not limited to:
- Data and technology firms
- Claims and risk management companies
How American Association of Insurance Services Data is Used
AAIS data is used to achieve the following: Provide information to commercial, personal, marine, and agricultural insurers. For instance, it provides insurance companies and homeowners with model forms describing the following:
- What homeowners policy covers
- What the policy excludes
- Whether the insurance provides actual cash value
- Replacement costs
- Modified replacement cost
- Functional replacement after a loss
As changes happen, AAIS usually updates its market model forms. Such changes may include exposure, lawsuits, and claims to assist insurers to keep on protecting themselves. AAIS developed policy language that is modified to assist insurers in limiting their exposure to mold losses. This is more especially when there increment in mold claims when it comes to insurance policies related to homeowners. It works to find out if there are any new sources of risk that may affect the insurance firms before extensive claims occur. This way, insurers can be in a position to choose whether or not to cover the risks or see if there is a need for them to charge more for the cover. When issuing policies to consumers, insurers can use the forms provided by the AAIS or may customize them to fit their format. The AAIS does data collection from participating insurance firms. They do this to provide information on claims to insurance firms. The information shared by AAIS includes information on the claims insurers have paid in the previous years (history of losses). It helps insurers to make informed decisions on the amount they can charge their customers as premiums, including the types of risks they can or cant cover. In most cases, insurers will want to know that the premium they are charging their customers is enough to cover the risks they are covering. They want to be sure that their premium charges to customers can enable them to pay out customers' claims. Lastly, AAIS provides insurance firms with statistical data about general liability, property, and automobile insurance. Such information helps them to remain at the top of the competition in the insurance industry. The information also helps them to be aware of the available new insurance product they can offer their customers, including the suitable states they can offer the product.
- What is insurance?
- Captive Agent
- Independent Agent
- Captive Insurance Company
- Combined Ratio
- Claims Adjuster
- Capital at Risk
- Assigned Risk
- Incurred But Not Reported
- Qualified Actuary
- Cession (Re-Insurance)
- Burning Cost Ratio
- What is an insurance contract?
- Accidental Means
- Anti-stacking Provisions
- What is an insurable interest?
- What are the common categorizations of insurance?
- National Association of Insurance Commissioners
- Insurance Regulatory Information System
- American Academy of Actuaries Definition
- American Association of Insurance Services Definition
- American Council of Life Insurance Definition
- American Insurance Association Definition
- American Risk and Insurance Association Definition
- LLoyd's of London
- Associate in Insurance Services (AIS) Definition
- Associate in Loss Control Management Definition
- Associate in Marine Insurance Management Definition
- Associate in Personal Insurance Definition
- Associate in Reinsurance (ARe) Definition
- Associate in Risk Management Definition
- Associate in Commercial Underwriting Definition
- Associate in Insurance Accounting and Finance Definition
- Associate in Surplus Lines Insurance Definition
- Chartered Insurance Professional Definition
- Chartered Life Underwriter Definition
- Chartered Property Casualty Underwriter Definition
- Vehicle insurancePrivate Passenger Auto Insurance Risk Profile
- Underinsured Motorist Coverage
- Uninsured Motorist Coverage
- Omnibus Clause
- Health Maintenance Organization
- Capitated Contract
- Point of Service Plan
- Children's Health Insurance Program
- Disability Insurance?
- Credit Disability Insurance
- Life Insurance?
- Cash Surrender Value
- Absolute Beneficiary
- Acceleration Life Insurance
- Accelerated Benefit
- Accelerated Option
- Accelerative Endowment
- Charitable Gift Life Insurance
- Incontestability Clause
- Waterfall Concept
- Assumed Interest Rate
- Clean Sheeting
- Hazard Insurance
- Homeowners, Renters, and Fire Insurance?
- Participating Community (Flood Insurance)
- Insurance Considerations for Business
- Business Liability Insurance
- Commercial General Liability
- Liability Risk Retention Act
- Excess Insurance and Umbrella Insurance Policy
- Business Interruption Insurance
- Key Person Insurance Definition
- Own-Occupation Policy
- Self-Funded Health Insurance Plan
- Basket Retention Policy
- Commercial Blanket Bond
- Alternative Risk Transfer Market Definition
- Commercial Property Casualty Market Index Survey
- What are the primary obligations of the insurer?
- Earned Premium
- Reservation of Rights Letter
- Collateral Source Rule
- What are the primary obligations of the insured?
- Insurance Premium
- Affidavit of Loss
- What is the general structure of an insurance contract?
- Ambiguity Principle
- Accommodation Line
- What are the common disputed provisions in an insurance contract?
- Absolute Exclusion
- All Risks Clause
- What is required for the termination of an insurance contract?
- Risk Management
- Professional Risk Manager
- Associate in Management (AIM)
- Financial Risk Manager
- Forecasting (Business)
- Objective Probability
- Unconditional Probability
- Enterprise Risk Management (ERM)
- Operational Risk
- Business Recovery Risk
- Political Risk
- Asset Protection
- Performance Bond
- Barra Risk Factor Analysis Definition
- Above Ground Risk (Mining Industry)
- Bumbershoot Policy (Maritime)
- Abandonment Clause (Boat or Vessel)
- Bobtail Liability Insurance (Trucking Industry)
- Anti-Indemnity Statute (Construction)