American Association of Insurance Services

AAIS files Homeowners By-Peril Rating Plan

Articles on actuarial and statistical topics
from AAIS's Viewpoint magazine

AAIS programs are built on actuarial expertise, statistical data, and technical resources that companies can utilize for their own product development efforts.

AAIS is one of only two national property/casualty statistical agents that collect data on individual policies, premium, and claims that can be used for both regulatory compliance and ratemaking.

AAIS also provides a range of technical products and support services to help insurers integrate AAIS programs into their company systems.

AAIS Actuarial Services can provide support for rate analyses and development of loss cost multipliers, incorporating industry data to supplement company data when necessary.

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Our actuaries are prepared to:

Review company experience and analyze company rate levels;
Integrate AAIS data to establish credibility where needed;
Analyze custom coverages or endorsements to suggest loss costs;
Analyze company options for modifying AAIS loss costs, territorial relativities, or other rating factors;
Calculate effects of changes to AAIS loss costs and relativities on a company's book of business;
Calculate company loss cost multipliers;
Calculate rates from AAIS loss cost tables and company multiplier, and produce company rate tables; and
Assist in completing filing forms and developing exhibits to support rate filings.

Our other actuarial capabilities are:

Reviewing company reinsurance arrangements;
Calculating liabilities for known and unknown losses;
Providing Statements of Actuarial Opinion; and
Training company personnel in actuarial techniques.

Our Statistical Reporting Service provides statistical plans that make the process valuable, efficient, and economical. AAIS’s philosophy of service stresses cooperation with companies to achieve timely, accurate statistical reporting.

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The latest statistical plans feature several benefits:

An expanded number of data elements anticipates regulatory requirements, thus minimizing the need for time-consuming and costly "special data calls;"
Data captured in individual records (one record per premium, claim, etc.) to support ratemaking applications;
Format designed to facilitate conversion from other plans to AAIS;
Customized reports of company data available on request; and
Company profile reports sent on annual basis.

No fines are assessed against companies with errors or omissions in their data reports. Rather, AAIS staff consults with companies to work out problems, and rewards good data with credits toward insurance line affiliations.

Beyond the commitment to service, AAIS provides its statistical reporting affiliates with free resources for doing the job efficiently:

Data entry and reporting software that automatically generates statistical submission from entered data;

Edit programs that detect errors before they are submitted to AAIS; and

Manuals for training statistical and data processing staff about the reporting and coding process.

AAIS Technical Product Support service helps companies seek solutions for automating use of AAIS programs.

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The role of AAIS's technical product support team is to help software vendors that are automating rating and policy issue functions to support AAIS programs.

American Association of Insurance Services
1745 S. Naperville Road | Wheaton, IL 60189-5898
630-681-8347 | 800-564-AAIS | Fax 630-681-8356