Actuarial Core Mathematics 1 (CM1) forms the core for classical actuarial expertise. It is one of the most interesting subjects and practical subjects with wide applicability. It provides students with essential knowledge by teaching the pricing of different financial products and life insurance contract.
Actuarial Core Mathematics 1 (CM1) is a combination of CT1 and CT5 and some chapters of both the units have been removed. It is also one of the basic papers in Actuarial and has links to many other papers. This paper is a must for Life Insurance. Excel has also been added to make it even more interesting and industry ready. Kindly read following points to know more about it:
Fees – For IFOA CM1 fees is £280 (reduced £165 or Rs 15,000). IAI has not released fees detail.
Material: Material can also be purchased from the Acted at £131(reduced price or Rs12,000). IAI has not released the material yet, it will soon be released.
Syllabus: There is 28 chapter in total over 1000 pages (excluding question bank and Xseries) divided into 5 sections. The recommended study hours are 250 hours making it a very vast subject, it is highly recommended to start early.
CT4 Chapter 1 Principles of actuarial modelling have also been added. And following chapters have been removed:
- Chapter 13 – Arbitrage and forward contracts (CT1).
- Chapter 15 – Stochastic interest rate models (CT1).
- Chapter 11 – Pension funds(CT5).
- Chapter 14 – Mortality, selection, and standardization (CT5).
Prior Knowledge: No prior knowledge is required from any of the actuarial paper
Actuarial Core Mathematics 1 (CM1) pattern: It is divided into two parts – CM1A and CM1B
Examination and Result: Both the examinations will have to be taken in the same sitting. However, the result will be combined and single.
Some tips to Study:
Actuarial Core Mathematics 1 (CM1)is a very interesting subject, no doubt in that. But it is also true it is very vast subject with a lot of concepts and formulas and with excel it is even more challenging.
In order to be successful, make sure you develop a study plan and be determined to stick to it. Your study plan should also constitute time for relaxation as well as emergencies and while studying try to understand the concepts instead of mugging them.
It’s recommended to do the revision on weekly basis, rather than doing it in at the end since you have a lot to cover and revision in the end will make you forgot most of it. Developing a formula sheet will also help.
Let’s face it. CM1 is a difficult subject. Some topics will make you hate the subject and some will make you feel like quitting. But that’s all at first, after spending some time you are good to go.
It’s also okay if you are not getting the concept in first attempt or even second attempt. In the third you’ll definitely
Just remember hard work and discipline is the key to your success.