What Is AAIS in Insurance and How Is It Different from ISO
If you work in commercial insurance, you have likely heard of AAIS and ISO. These organizations are often mentioned in the same conversation, yet many MGAs, wholesalers, and carriers are unclear about what AAIS actually does, how it differs from ISO, and where operational platforms fit in.
This guide explains AAIS in plain language, how it compares to ISO, and how insurance programs actually operate using AAIS standards.
What Does AAIS Stand For
American Association of Insurance Services stands for the American Association of Insurance Services.
AAIS is a not for profit advisory organization that provides insurance carriers and delegated authority programs with:
- Policy forms and manuals
- Rating guidance
- Statistical reporting support
- Compliance and filing assistance
AAIS does not sell insurance, issue policies, or run insurance operations. Its role is to define standards that insurance programs use as a foundation.
What Does AAIS Do for Insurance Companies
AAIS exists to reduce complexity and inconsistency in commercial insurance programs.
At a high level, AAIS helps insurance companies by:
- Drafting standardized policy language
- Publishing rating guidance for commercial lines
- Supporting regulatory filings and statistical reporting
- Offering flexible program structures for specialty risks
Because AAIS focuses on standards rather than operations, it is widely used by carriers that support MGAs, wholesalers, and program administrators operating under delegated authority.
What AAIS Does Not Do
This is where confusion often arises.
AAIS does not:
- Rate risks in real time
- Bind coverage
- Issue policies
- Process endorsements
- Handle accounting or reporting workflows
AAIS defines how insurance products should work. It does not provide the systems that actually operate those products day to day. This gap is where operational platforms come into play.
AAIS vs ISO What Is the Difference
Insurance Services Office and AAIS serve similar roles, but they differ in structure and usage.
Both organizations:
- Provide insurance forms and policy language
- Publish rating guidance
- Support regulatory compliance
Key differences include:
ISO
- More standardized across carriers
- Widely used in admitted lines
- Less flexible for program specific customization
AAIS
- More modular and configurable
- Frequently used in delegated authority programs
- Common in Inland Marine and Builders Risk
- Favored by MGAs and program administrators for specialty risks
Neither is inherently better. The choice depends on the type of program being built and how much flexibility is required.
Why AAIS Is Popular for Builders Risk and Inland Marine
AAIS is widely adopted for Builders Risk and Inland Marine because these lines require flexibility.
Examples include:
- Construction specific coverage variations
- Multiple Builders Risk structures such as Civil, MU, and MU SPEC
- Motor Truck Cargo rating based on vehicles or gross receipts
- Complex endorsements and mid term changes
AAIS provides the standards that support these use cases. Platforms must still implement the logic, workflows, and reporting.
Learn more about how these programs operate in practice:
Where AAIS Stops and Platforms Begin
AAIS defines what an insurance product is. Platforms define how that product operates.
To run a real insurance program, organizations need systems that handle:
- Rating logic in production
- Policy binding and issuance
- Endorsements and mid term changes
- Accounting visibility
- Reporting and oversight
This is why most AAIS programs rely on a commercial lines platform to operationalize AAIS standards.
See how AAIS standards are implemented end to end:
Production Ready AAIS Commercial Lines Platform for MGAs Wholesalers and Carriers
How MGAs Wholesalers and Carriers Use AAIS Today
AAIS is used across the insurance ecosystem.
MGAs
- Launch delegated authority programs
- Customize coverage and pricing
- Operate specialty lines at scale
Program Administrators
- Enforce consistency across multiple MGAs
- Support carrier governance requirements
Wholesalers
- Place complex risks with speed
- Support AAIS backed programs without fragmented systems
Carriers
- Enable delegated authority while maintaining oversight
- Standardize reporting and compliance
Each of these groups relies on operational platforms to turn AAIS guidance into live programs.
Frequently Asked Questions About AAIS
What does AAIS stand for?
AAIS stands for the American Association of Insurance Services.
Is AAIS the same as ISO?
No. Both organizations provide insurance standards, but AAIS is generally more flexible and commonly used in delegated authority and specialty programs.
Does AAIS issue insurance policies?
No. AAIS provides standards and guidance, while policy issuance is handled by insurance platforms and carriers.
Who uses AAIS?
AAIS is used by carriers, MGAs, wholesalers, and program administrators operating commercial insurance programs.
Is AAIS required?
No. AAIS is not required and is one of several standards organizations carriers may choose based on program needs.
How Selectsys Supports AAIS Programs
Selectsys provides the operational layer that turns AAIS standards into live insurance programs.
This includes:
- Rating implementation
- Policy issuance and endorsements
- Accounting visibility and reporting
- Support for delegated authority workflows
Learn how AAIS programs are operationalized in practice: AAIS Rating Policy Issuance and Accounting
Conclusion
AAIS plays a critical role in commercial insurance by defining standards and guidance. Understanding what AAIS does, how it differs from ISO, and where operational platforms fit is essential for building scalable insurance programs.
As AAIS adoption grows in Builders Risk and Inland Marine, the importance of production ready platforms continues to increase.
