1. User Guide
  2. Exploring Oracle Insurance Accounting Analyzer Application
  3. Level of Aggregation
  4. Grouping Contracts at Initial Recognition According to Expected Profitability
  5. Onerous Classification

Onerous Classification

The insurance contracts or cohorts' onerous classification is performed in the application by checking whether the contracts are net outflow at inception. If the contracts are profitable at inception, then the CSM is projected into the future by using different assumption scenarios. For any projected period, a loss is recognized then the contract is marked as profitable with a significant possibility of turning onerous.