How MGAs Use AAIS to Launch Commercial Lines Programs
Launching a commercial lines program as an MGA requires speed, flexibility, and operational discipline. Many MGAs choose AAIS because it provides standardized policy language and rating guidance that supports delegated authority programs without forcing rigid structures.
This guide explains how MGAs use AAIS in practice, what is required to move from standards to live programs, and where platforms fit into the process.
Why MGAs Choose AAIS
American Association of Insurance Services is widely used by MGAs because it supports customization while maintaining compliance.
MGAs often choose AAIS when they need:
- Flexible coverage structures
- Specialty program design
- Support for delegated authority models
- Faster product launches without starting from scratch
AAIS provides a strong foundation, but it is only the starting point.
The Typical MGA Launch Path Using AAIS
Most MGAs follow a similar path when launching AAIS based programs.
Step 1: Define the product using AAIS standards
MGAs select AAIS forms and rating guidance that align with the target line of business, such as Builders Risk or Inland Marine. This establishes coverage terms, exclusions, and rating methodology.
Step 2: Secure delegated authority from a carrier
With AAIS standards in place, MGAs work with carrier partners to define underwriting authority, limits, and governance requirements.
AAIS helps support this step by providing standardized documentation that carriers recognize and trust.
Step 3: Implement rating in production systems
AAIS publishes rating guidance, not rating software. MGAs must implement that guidance in production systems that can:
- Accept underwriting inputs
- Apply rating logic consistently
- Generate quotes and bind coverage
This is where operational platforms become essential.
Step 4: Enable policy issuance and endorsements
After binding coverage, MGAs must issue policies and manage mid term changes.
This includes:
- Policy document generation
- Endorsements and mid term changes
- Renewals and servicing workflows
Without integrated issuance, MGAs often rely on manual processes that do not scale.
Step 5: Operate and scale the program
Once live, MGAs must support:
- Ongoing underwriting activity
- Policy servicing and endorsements
- Reporting and oversight
- Carrier governance requirements
AAIS defines the product. Platforms operate the program.
Common Lines MGAs Launch Using AAIS
AAIS is frequently used by MGAs launching programs in:
- Builders Risk
- Inland Marine
- Motor Truck Cargo
- Specialty commercial lines
These lines often require flexible structures and frequent endorsements.
Learn more about these programs:
Where MGAs Run Into Trouble
Many MGA launches slow down after the initial product design phase.
Common challenges include:
- Rating guidance implemented inconsistently
- Disconnected policy issuance workflows
- Manual endorsements and renewals
- Limited visibility into program activity
- Difficulty meeting carrier reporting expectations
These issues are not caused by AAIS. They are caused by missing operational infrastructure.
How Platforms Enable Successful MGA Launches
To launch and scale AAIS based programs, MGAs need platforms that can:
- Implement AAIS rating guidance accurately
- Support policy binding and issuance
- Manage endorsements and servicing
- Provide accounting visibility and reporting
- Support delegated authority oversight
Platforms bridge the gap between AAIS standards and day to day operations.
See how AAIS programs are operationalized:
Production Ready AAIS Commercial Lines Platform for MGAs Wholesalers and Carriers
How Selectsys Supports MGA AAIS Programs
Selectsys provides the operational layer MGAs need to launch AAIS based programs efficiently.
This includes:
- Production ready rating implementation
- Policy issuance and endorsements
- Reporting and operational visibility
- Support for delegated authority workflows
Learn more about MGA specific capabilities: AAIS Platform for MGAs
Frequently Asked Questions About MGAs and AAIS
Can MGAs launch programs using AAIS?
Yes. AAIS is commonly used by MGAs launching delegated authority commercial lines programs.
Does AAIS provide systems for MGAs?
No. AAIS provides standards and guidance, while MGAs use platforms to operate and manage their programs.
How long does it take to launch an AAIS MGA program?
Timelines vary by scope, but MGAs using integrated platforms typically launch much faster than those relying on manual processes.
What do carriers expect from MGA AAIS programs?
Carriers expect consistent underwriting, reliable policy issuance, and clear reporting regardless of the standards organization used.
Conclusion
AAIS plays an important role in helping MGAs define commercial lines products. Successful program launches depend on how those standards are implemented operationally.
By combining AAIS guidance with production ready platforms, MGAs can launch faster, operate more efficiently, and scale programs with confidence.
