1. CM1 – Actuarial Mathematics for Medelling (Part A & B)
CM1 focuses on the mathematical techniques used in financial product modeling.
- Time value of money, interest theory
- Loans, bonds, and project appraisals
- Life tables, life insurance & annuity evaluations
- Gross premiums, reserves, profit testing
- Unit-linked & with-profit contracts
Key Skill: Applying actuarial models to real-life financial and insurance problems.
2. CS1 – Actuarial Statistics (Part A & B)
This subject blends statistical theory with practical data analysis, using R programming. The curriculum covers:
- Probability distributions
- Joint distributions and expectation
- Sampling, estimation, hypothesis testing
- Linear regression and Bayesian statistics
- Credibility theory
Key Skill: Data handling and model-building using statistical methods and R code.
3. CM2 – Financial Engineering and Loss Reserving
This paper is analytical and computational, delving into advanced financial instruments.
- Stochastic interest rate models
- Option pricing using Black-Scholes model
- Risk-neutral valuation and derivative pricing
- Loss reserving methods for general insurance
Key Skill: Modeling financial markets and pricing complex insurance liabilities.
4. CS2 – Risk Modelling and Survival Analysis
CS2 develops your ability to model uncertain future events.
- Survival models and estimation
- Markov chains and processes
- Cox regression and multiple decrement models
- Risk aggregation and ruin theory
Key Skill: Applying survival models and simulation techniques to risk-based problems.
5. CB1 – Business Finance
CB1 introduces core concepts of corporate finance.
- Time value of money in business decisions
- Financial mathematics in capital budgeting
- Sources of finance and financial reporting
- Risk-return analysis, portfolio theory
Key Skill: Understanding how businesses manage capital and make investment decisions.
6. CB2 – Business Economics
CB2 covers micro and macroeconomics relevant to actuaries.
- Market structures and pricing strategies
- Inflation, interest rates, and economic growth
- Government policies, taxation, regulation
Key Skill: Analyzing economic trends and how they impact financial and insurance products.
Conclusion
Together, these six papers form a comprehensive framework of technical, analytical, and economic knowledge necessary to succeed in the actuarial profession. Whether you're preparing for IFoA or IAI exams, mastering these subjects equips you for a wide array of roles in insurance, pensions, finance, and beyond.