Description: Authored by Charles L. Gilbert and Hélène Baril of Nexus Risk Management, this expert-opinion piece advises Canadian life insurers on how IFRS 17 changes asset-liability management for the Contractual Service Margin (CSM). It presents a two-lens ALM framework—(1) manage assets notionally supporting fulfilment cash flows to control interest-rate driven P&L/OCI volatility, and (2) use strategic asset allocation for assets notionally supporting capital and the CSM to optimize market-risk/return and capital efficiency. The article contrasts backing the CSM with FVPL growth assets (higher long-term returns but more earnings volatility and capital cost) versus amortized-cost/FVOCI fixed income (greater earnings stability but lower yield), and discusses reinvestment, capital implications and operational choices. Its intent is practical guidance; its value is a clear, actionable framework for weighing accounting, capital and economic trade-offs.