Performing Successive Measurements

After the initial asset or liability measurement at inception, subsequent measurements of ongoing group insurance contracts are also performed. The total liability of a group of insurance contracts is comprised of the liability of the remaining coverage and the liability for incurred claims. The liability for remaining coverage is calculated as the sum of fulfillment cash flows of the coverage to be provided in the future and the remaining CSM.

The liability for incurred claims is measured as the fulfillment cash flows for claims and expenses already incurred but not yet paid.

The fulfillment cash flows are measured again on each reporting date to reflect estimates based on current assumptions. This measurement applies the same requirements that were applied for the initial measurement. Changes in estimates of the fulfillment cash flows are reflected in profit or loss, other comprehensive income, or in some cases, the CSM is adjusted.