  In the presence of monotone information, the stochastic Thiele equation
describing the dynamics of state-wise prospective reserves is closely related
to the classic martingale representation theorem. When the information utilized
by the insurer is non-monotone, the classic martingale theory does not apply.
By taking an infinitesimal approach, we derive a generalized stochastic Thiele
equation that allows for information discarding. En passant, we solve some open
problems for the classic case of monotone information. The results and their
implication in practice are illustrated via examples where information is
discarded upon and after stochastic retirement.
