As all insurance companies are probably aware by now, the introduction of IFRS 17 comes with many new requirements. One of these new requirements is a contractual service margin (CSM). The CSM is the unearned profit of an insurance contract. While technical experts are still considering what methodology should be used to calculate the CSM, CTOs and other IT experts such as heads of systems are investigating what technology should be used to calculate the CSM.
- The contractual service margin (CSM) is a significant part of IFRS 17
- How are insurance companies factoring this into their IT strategy?