Institute & Faculty of Actuaries examinations - Guidance for new learners
The Core Principles subjects (made up of the Actuarial Statistics (CS), Actuarial Mathematics (CM), and Core Business (CB) modules) in the Institute and Faculty of Actuaries' (IFoA's) professional exams provide an initial grounding in many of the key principles and concepts required in actuarial work. These principles and concepts are developed in the later IFoA exams.
It is a requirement that students pass or obtain exemptions from all of the Core Principles subjects on the way to qualifying as an Associate or Fellow of the IFoA.
The Core Principles exams can be attempted in any order, and there is no requirement to pass any exam before sitting another. However it can be useful for students to pass certain Core Principles exams before others. Further information on an appropriate order for students to sit the Core Principles exams is provided within this document.
CS1 – Actuarial Statistics 1
This subject provides a grounding in the basics of statistical techniques that are of particular relevance to actuarial work, including features of statistical distributions, data analysis, statistical inference, regression theory and applications, and Bayesian statistics.
CS2 – Actuarial Statistics 2
This subject provides a grounding in statistical modelling techniques that are of particular relevance to actuarial work, including using statistical distributions for risk modelling, time series models, stochastic processes, survival models and machine learning.
It is useful, but not mandatory, to have studied subject CS1 before studying CS2, as this subject assumes competence with the basic statistical techniques covered in CS1.
CM1 – Actuarial Mathematics 1
This subject provides a grounding in the principles of mathematics and modelling as applied to actuarial work, focusing particularly on deterministic models which can be used to model and value known cashflows as well as those which are dependent on death, survival, or other uncertain risks. It introduces the theory of interest rates, the basic types of life and health insurance contracts and the concepts of pricing and reserving.
It is useful, but not mandatory, to have studied subject CS1 before studying CM1, as this introduces techniques that are drawn upon and used in this subject.
CM2 – Actuarial Mathematics 2
This subject provides a further grounding in the principles of mathematics and modelling as applied to actuarial work, focusing on stochastic asset-liability models and the valuation of financial derivatives. It also includes theories on the behaviour of financial markets and different measures of investment risk.
It is useful, but not mandatory, to have studied subjects CS1, CS2, CM1 and CB2 before studying CM2, as these introduce techniques that are drawn upon and used in this subject.
CB1 – Business Finance
This subject provides a basic understanding of corporate finance, including a knowledge of the instruments used by companies to raise finance and manage financial risk. It also provides the ability to interpret the accounts and financial statements of companies and financial institutions.
It is useful, but not mandatory, to have studied subject CM1 before studying CB1, in order to obtain a basic understanding of interest rates.
This subject is closely linked to subjects CB2 and CB3.
CB2 – Business Economics
This subject provides an introduction to the core economic principles and how these can be used in a business environment to help decision making and behaviour. It provides a grounding in the fundamental concepts of microeconomics that explain how economic agents make decisions and how these decisions interact. It also provides a grounding in the principles underlying macroeconomics that explain how the economic system works, where it fails and how decisions taken by economic agents affect the economic system.
This subject is closely linked to subjects CB1 and CB3.
CB3 – Business Management
This subject provides an understanding of the wider business content in which actuaries operate, including consideration of relevant case studies. It includes consideration of business strategy, competition, culture, values and behaviour, change management, leadership and team-working.
This subject is closely linked to subjects CB1 and CB2
Later IFoA Exams
The relationship between the Core Principles exams and the other IFoA exams is briefly set out below.
The Core Practice (CP) subjects assume knowledge and understanding across all the Core Principles (CS, CM, CB) subjects, as they build upon the principles and concepts developed there.
The Specialist Principles (SP) subjects and the Specialist Advanced (SA) subjects use the concepts developed in the CS, CM, CB and CP subjects to solve complex problems, to produce coherent advice and to make recommendations in specific practice areas.
- 5 February 2019
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Presenter Matt Modisett
In collaboration with the Institute and Faculty of Actuaries, the Principles of Responsible Investment is delighted to host this webinar discussing the response to the TCFD’s recommendations two years on from their publication. The webinar will feature new analysis of the 591 investors representing $45 trillion who responded to PRI’s 2019 climate indicators, insights from the past Chair of the IFoA’s Resource and Environment Board as well as an investor case study of implementation in practice from Aviva.
An introductory session to help you get ahead with climate change.
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This KSS talk, presented by the FCA Head of Department in Scotland, will focus on the following 3 main areas:
- FCA business plan priorities
- The future of regulation
- FCA Engagement in Scotland
Friday, 6 September, Beijing Local Time (CST) 14.00-16.30; British Summer Time (BST) 07.00-9.30
The IFoA Beijing Office and China Life are pleased to be co-hosting a Professional Skills Training (PST) session in Beijing, Shanghai and Shenzhen on Friday, 6 September. Wen Li (FIA), the IFoA Lead Representative in China and East Asia, will lead the PST presentation and discussion on ‘Getting it right!’.
The main venue will be in Beijing. Members in Shanghai and Shenzhen can join the interaction with Beijing via video conference at China Life’s regional venues. (see full details below)
This event is now fully booked. Please click here to register for the wait list.
The actuarial profession has much to offer the world of banking. In this second webinar on opportunities for actuaries in banking we have two actuaries sharing their experience
GIRO is attended annually by over 800 delegates and speakers who are keen to discuss key topics such as Pricing, Reserving, Modelling and the future of the insurance industry. GIRO 2018 was a huge success and we have opened bookings early for what we hope will be another brilliant conference at the EICC in Edinburgh this year.
Presenter Jon Spain
This workshop, now in its sixth year, is aimed at senior actuaries working in life insurance - predominantly Chief Actuaries, but also Reviewing Actuaries and others working in risk and financial reporting. It will provide seven hours of relevant CPD.
Three actuaries – and CEOs – discuss their views on how the business world is changing and what that might mean for actuaries in the future.
Have you ever thought about working in wider fields? Would you like to play a role in the fight against climate change to make the planet better?
It can be difficult to do this - but seeing an example you can follow can make it more realistic. In this ‘green’ case study a template is outlined to show how actuaries can apply their skills more broadly - and in doing so, to make a difference.
The Institute and Faculty of Actuaries and the Royal Statistical Society have worked together to develop joint ethics guidance on data science. This is the culmination of an 18 month programme of practitioner led work.
Join us for the launch of this new guidance, with a high-level panel discussion which will explore the role of data science practitioners and professional bodies in data ethics.
The Institute and Faculty of Actuaries is running a sessional meeting on autonomous vehicles on 28th October. The session will showcase the work of the IFoA “Autonomous Vehicles” working party alongside a number of expert external presenters.
ARC Event: Beyond Proportional Hazards: Statistical methods for assessment of the impact of medical advances and health interventions on longevity and population projections.
This workshop is being delivered by the Actuarial Research Centre’s (ARC) ‘Big Health and Actuarial Data’ Research Programme.
This evening will feature two new cases studies that highlight the implications for insurers of issues impacting on health and mortality for life, pensions, and health and care products; Impactability modelling: a worked example in Type II diabetes presented by Josephine Robertson, and Seasonal Mortality in England and Wales 1993-2016 presented by Mary Hall, Dublin City University.
Join us for this brand new seminar that brings together our Current Issues in Pensions, Pensions and the Law, and Investment for Pension Actuaries events. The seminar builds on the IFoA’s Annual Pension Conference with sessions covering CDC, TPR’s code of practice, investments, legal updates and Professional Skills Training with a focus on interactive discussion throughout.
The National Records of Scotland (NRS) collects, preserves and produces information about Scotland's people and history to inform current and future generations - work that underpins the fabric of Scottish society and tells the story of our nation. This KSS talk will explore the following and other areas impacting Scotland’s changing population, and assess the potential implications of the changes:
- population statistics
- life expectancy
- changes in age structure
- birth and death rates, including causes of death statistics.
The Life Conference is the premier event for professionals interested in life insurance. Offering a wide range of workshops and plenary sessions it’s the perfect opportunity to discover what’s hot and current in life insurance ensuring you get up to date on the latest thinking and innovation whilst meeting and exchanging ideas with a broad range of professionals.
The IFoA is pleased to announce that this year’s Autumn Lecture will feature the Rt Hon Nicky Morgan MP as its guest speaker. Nicky has previously served as Financial Secretary to the Treasury and Minister for Women. She now chairs the Treasury Select Committee whose remit is to examine the expenditure, administration and policy of HM Treasury, along with all of its agencies and associated bodies.
Watch the live stream of this year's Autumn Lecture with guest speaker Rt Hon Nicky Morgan MP.
We are delighted to announce the launch of the findings from our ARC funded Behavioural Finance research with a special evening event at Staple Inn on Tuesday14th January 2020. Entitled Behavioural Aspects of Institutional Investment Decision-Making, this research programme is being delivered by City, University of London, Leeds University Business School and Ipsos.