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IFRS 17: Contractual Service Margin (CSM)

The IFoA Life Research Sub-committee formed three working parties in 2018 to analyse different aspects of IFRS 17. One of these working parties was the IFRS 17 CSM Working Party which delivered in line with its stated objectives and presented its work in a sessional paper in October 2020. During the course of its work, it was evident that a number of IFRS 17 topics will remain open for debate and that will continue to pose challenges to stakeholders. The working party has been relaunched following its brief hiatus with revised terms of reference that would look to cover wider areas of IFRS 17 from a life insurer’s perspective.

Key objectives:

  • Identify IFRS 17 implementation challenges faced by life insurers globally other than those covered by existing working parties
  • Identifying possible interpretations and approaches to tackling those challenges
  • Consider the operational as well as technical implications of the different approaches to ensure that recommendations are proportionate
  • Provoke thought leadership and innovation within the industry through presentations at various forums to gain wider input.


View the ToR


Previous objectives:

  • Analysing the technical, operational, and financial impacts that arise with respect to the calculation of the CSM at initial recognition and subsequent measurement. These include issues pertaining to:
    • contract boundaries
    • ‘locked-in’ financial assumptions
    • coverage units
    • reinsurance contracts held
    • loss components
    • with-profits funds
    • transition
    • the impact on management information and relevant KPIs
  • In addressing these issues, the working party will also consider existing literature and research material produced by relevant stakeholders (e.g. IASB and TRG; EFRAG; IFoA and other international actuarial associations; ICAEW and other accountancy bodies; consulting and audit firms; regulators and national standard setters)

Key outputs:


Chair: tbc
Membership: 15

2018 / relaunched 2021

Contact Details

If you want more information about this research working party please contact the Communities Team.

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