CSM Question

Staff-T1Staff-T1
edited March 1 in CIA.IFRS17-LRC

Questions from candidate:

I am having trouble wrapping my head around ifrs 17 LRC
LRC = FCF + CSM
Isn't CSM = PV(PVCf) - RA

I am coming from Life insurance so maybe not thinking about this LRC correctly.

Comments

  • Staff-T1Staff-T1

    I think there are a couple of problems here:

    • PV(PVCF) -> What does this mean? Present value of the present value of future cash flows?
    • The RA is part of he PVCF
    • CSM is just meant to reflect future profit, or the excess of cash inflows over cash outflows
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