BBA -VFA –CSM- abbreviations for insurance accounting you should know?

abbreviations for insurance accounting
Written by Anne

You are working in the field of insurance accounting? Then you know industry experts, consultants and many more use a lot of abbreviations in their presentations every day. We don´t know the reason exactly, but having a look at the accouting approaches and concepts, you know why. Imagine – you are standing in front of your audience and you have to say every time e.g. “contractual service margin”, maybe sometime you will use “CSM”?

In this article, we collected several common abbreviations for insurance accounting. If you have an abbreviations, which is not listed so far, feel free to use our comment field.

VFA:stands for “Variable Fee Approach”

IASB: stands for „International Accounting Standards Board”, you can also call them the “BIG Boss”

FASB: stands for „Financial Accounting Standards Board”

IFRS: stands for “International Financial Reporting Standards”

GASB: stands for “Governmental Accounting Standards Board“

IASCF: stands for “International Accounting Standards Committee Foundation“

GM: stands for General Modell and is used in combination with VFA (Variable Fee Approach)

CSM: stands for Contractual Service Margin and is used in combination with the Variable Fee Approach and Building Block Approach.

BBA: stands for “Building Block Approach”

NEP: Net Earned Premium

SCI: stands for “statement of comprehensive income”

OCI: stands for “Other Comprehensive Income” and relates to all changes that are not permitted to be included in profit and loss statement

IAS: stands for International Accounting Standards

PAA: stands for Premium Allocation Approach

DAC: stands for Deferred Acquisition Cost

SAP FS-PER: stands for SAP Performance Management for Financial Services

coverage period: period during which the entity provides coverage for insured events

experience adjustment: distinguished between experience adjustment for premium receipts and experience adjustment for insurance service expenses

financial risk: The risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price,
currency exchange rate, index of prices or rates, credit rating or credit index or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract

group of insurance contracts: set of insurance contracts resulting from the division of a portfolio of insurance contracts

insurance contract:  contract under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder.

About the author


Reporting based on IFRS 17 is not always easy as it seems to be - as insurance companies have several IT-systems in their portfolio, the biggest challenge, in my opinion, is to connect all of the systems to get the right data and consequently the right report.


  • Dear Charly,

    maybe it would be interesting to add a short description to the abbreviation OCI since it is frequently used but often it’s functional meaning is not known. It relates to all changes that are not permitted to be included in P/L ( = profit or loss :-)). Thus, these changes are recognized in OCI without impacting income.

    • Dear Andrea,

      Thank you very much for your comment and your additional abbreviation OCI, which we of course add to our list. Feel free to add another one.

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