5 principles from csm working-party
- profitable business must spread those profits over time.
- loss-making business recognise those losses immediately.
- csm adjusted for all changes that relate to future service
- business previously expected to be profitable, now loss-making firstly extinguishes the CSM and then establishing a loss component
- With some exceptions must recognise the expected net cost or net gain for reinsurance contract over time.
teleporation base images
- red jelly