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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The term 'office politics' usually has a lot of negative connotations and indeed an inability to be able to navigate an organisation's formal processes and interact effectively with others at work can have far reaching adverse consequences.
Public scrutiny of what investment funds deliver for consumers continues to be high profile, with the FCA’s Asset Management Market Study requiring fund managers to make (and publish) an annual assessment of value for authorised funds from the end of 2019.
Reimagining ageing, hosted by the Institute and Faculty of Actuaries, in partnership with the ILC
Increasing global concern over the impact of climate change has recently led to public scrutiny over the adequacy of existing risk management practices by insurance firms and pension schemes in dealing with these challenges, that potentially impact both individual actuaries and the IFOA generally.
This event is now full. Please register here for the wait list
Covering current topics and industry trends, the conference also includes a pre-conference evening dinner (18 June) giving you the opportunity to develop your network.
This KSS talk from FinTech Scotland's CEO will explore the mission to create an integrated Fintech ecosystem through provision of funding, support, infrastructure and talent that recognises and responds to the needs of all stakeholders - and the overarching aim for Scotland to be one of the top 5 Fintech global leaders by 2020.
To book your place, please email Barry_Shannon@standardlife.com
CIGI is a well-established one-day seminar designed to increase awareness and encourage discussion on a variety of topical issues across the general insurance industry.
There will be an excellent and diverse line-up of speakers to provide a variety of perspectives and challenge covering technical and professional areas.
Fake news, post truth, mistrust of experts... a familiar roll call of anxieties – or perhaps clichés – about our data rich world. They point to an underlying fear that in this data abundant age the bad data drives out the good and we are left with a broken public discourse.
This event is now fully booked. Please click here to register on the waiting list.
Our motivation for discussing this important subject comes from some exciting recent research which has analysed the impact of behavioural factors on the decision to purchase an annuity. This work has shown that behavioural factors can explain the well-known low demand for immediate annuities but this research also identifies an important opportunity in relation to deferred annuities (DA). The research suggests that these factors lead to positive incentives to purchase a DA and that, for longer deferred periods, a DA could be an attractive product for both consumers and insurers.
The pensions dashboard has been talked about across the industry for a long time and now nears implementation with DWP’s consultation ending in January 2019.
The Institute and Faculty of Actuaries (IFoA) and Singapore Actuarial Society (SAS) are organising a joint Professional Skills Training (PST) in Singapore. This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Life, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.
Notice is hereby given that the ANNUAL GENERAL MEETING of the INSTITUTE AND FACULTY OF ACTUARIES will be held at The Hub, Edinburgh on Wednesday 26 June 2019 at 16.30 (Preceded by tea from 16.00) and followed by a PRESIDENTIAL ADDRESS given by John Taylor.
The Institute for Financial and Actuarial Mathematics (IFAM) at the University of Liverpool is pleased to host the 2019 Actuarial Teachers’ and Researchers’ Conference from 27-28 June 2019. This annual two-day event has been running annually now for many years, each time hosted by a different university, and provides all those interested in actuarial research and education a great opportunity to share their ideas and catch up on the latest developments.
The Institute and Faculty of Actuaries (IFoA) and Actuarial Society of Malaysia (ASM) are organising a joint Professional Skills Training (PST) in Kuala Lumpur. This session is suitable for actuaries working in any area (i.e. it is not specifically aimed at Life, GI or any other technical discipline) and is interactive, so you should come along prepared to take part in the discussions.
Air pollution has gained increasing attention lately. Nicola Oliver, head of longevity and mortality research for Medical Intelligence, will discuss not only the impacts of air pollution on health and life expectancy but also how as an industry we should be addressing it.
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.