V
Viridian
Member
There is an Acted paragraph in the notes that says:
"If changes are made to non-investment assumptions, the CSM is adjusted to offset any resultant change in the BEL and RA. The total liability remains unaffected by the assumption change"
What is the rationale behind adjusting the CSM directly for changes in assumptions? How is this adjustment made? Also unclear on what exactly it means by saying the total liability is unaffected by the assumption change?
Any help appreciated!
"If changes are made to non-investment assumptions, the CSM is adjusted to offset any resultant change in the BEL and RA. The total liability remains unaffected by the assumption change"
What is the rationale behind adjusting the CSM directly for changes in assumptions? How is this adjustment made? Also unclear on what exactly it means by saying the total liability is unaffected by the assumption change?
Any help appreciated!