Contractual service margin (CSM)

Roles that need it

• Actuarial Analyst
• Life & Pensions Actuarial Analyst
• General Accountant
• External Audit (Financial Services)

Skills it belongs to

• Insurance accounting (IFRS 17, technical provisions)
• Life and pensions actuarial mathematics

Related concepts

• IFRS 17 Insurance ContractsIFRS 17 is the accounting standard for insurance contracts, effective from 1 January 2023. It measures contracts as fulfilment cash flows (discounted, risk-adjusted estimates) plus a contractual service margin that releases profit as the insurer provides cover.
• Technical provisionsTechnical provisions are the value of an insurer's obligations to policyholders under Solvency II, equal to a best estimate of discounted future cash flows plus a risk margin. They correspond to the amount another insurer would require to take over the obligations.

Sources

• IFRS 17 Insurance Contracts, IFRS Foundation (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.