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CSM and its Amortisation

  • Michael Winkler,
  • Sunil K. Kansal

摘要

The Contractual Service Margin (CSM) represents the unearned profits which the insurance contract will earn in the future by providing insurance services21. The CSM is included in the Liability for Remaining Coverage (LRC). The Liability of Incurred Claims (LIC) does not contain any CSM – in other words, we do not expect profits arising from unwinding incurred claims.