CM1 Exam: Actuarial Mathematics for Modelling

If you’re exploring the actuarial journey, CM1 is one of those subjects that stays with you far beyond just passing the exam. Why? Because it combines two critical areas — financial mathematics and life contingencies — making it both highly practical and widely applicable in the actuarial profession.

Whether you’re interested in life insurance, pensions, or pricing of financial products, CM1 (Core Mathematics 1) – Actuarial Mathematics for Modelling lays the mathematical foundation that many other subjects build upon. The next exam that comes under the CM series is CM2 – Economic Modelling.

Let’s break it all down.

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What is CM1 and Why is it Important?

CM1 is a combination of two older CT papers — CT1 (Financial Mathematics) and CT5 (Contingencies). Post-syllabus revamp, CM1 focuses more on real-life applications of mathematical models, including Excel-based problems, to make you more industry-ready.

The exam covers:

• Interest and discounting techniques
• Life insurance product pricing
• Mortality modeling
• Annuities, assurances, and reserves
• Financial instrument valuation

If you’re aiming for roles in life insurance, pensions, or valuation, CM1 is not optional — it’s foundational. To review all the exams that you may need to give in Actuarial Science, read our guide on becoming an actuary.

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Exam Pattern: CM1A + CM1B

CM1 is split into two parts:

• CM1A – Theory-based paper (written answer format)
• CM1B – Practical paper using Excel

✅ Important Note: Both parts must be taken in the same sitting, and your final result is a combined score.

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CM1 Syllabus: What’s Covered?

The syllabus spans 28 chapters and over 1,000 pages of content, divided across 5 key sections. It’s a vast subject, so the earlier you start, the better.

Some topics you’ll learn:

• Time value of money
• Interest rate theory
• Cash flows, loans, and bonds
• Survival models
• Life tables and mortality functions
• Premium calculations and reserves
• Profit tests
• With-profits and unit-linked contracts
• Multiple life models

❌ Chapters Removed from Previous CT Syllabus

• Arbitrage and forward contracts (CT1, Ch.13)
• Stochastic interest rate models (CT1, Ch.15)
• Pension funds (CT5, Ch.11)
• Mortality selection and standardization (CT5, Ch.14)

✅ Addition: Chapter 1 from CT4 on actuarial modeling principles has been added to CM1.

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How Many Study Hours Do You Need for CM1?

The IFoA recommends at least 250 hours of study time. It’s one of the lengthier papers, so build a consistent plan from the start and don’t leave revision for the last minute.

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Is CM1 Difficult?

Yes, CM1 is considered challenging — not just because of the math but because of the volume. The formulas can be overwhelming at first, and the Excel component (CM1B) requires both technical skills and clarity of application.

But don’t worry — once you spend time with the material, it starts making sense. The trick is to build slowly, revise regularly, and not get frustrated if things don’t click in the first go.

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Tips to Prepare for CM1

1. Build a formula sheet from Day 1
2. Revise every week — don’t leave it all for the end
3. Don’t mug up concepts – understand why something works
4. Practice Excel weekly to get confident for CM1B
5. Do mock exams and past year papers under timed conditions
6. Leave time for concept reinforcement — not just problem-solving
7. Study in sections, and don’t hesitate to go back and revise the basics

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Fees for the CM1 Exam

• IFoA CM1 Exam Fee: £280 (standard), £165 (reduced) – approx ₹18,000
• IAI Fee: Yet to be announced

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Study Material

• ActEd Material (IFoA): ~£131 (approx ₹14,500 with reduced pricing)
• IAI Material: Will be released soon

In the meantime, you can begin preparation by referring to CT1 material, excluding the topics that are no longer part of the new CM1 syllabus. Also check out revision notes and practice modules available online.

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Final Thoughts

Let’s be honest — CM1 is tough. It’s one of those subjects where the volume and complexity can test your patience. You’ll have moments of frustration and self-doubt. But once you power through the initial struggle, everything begins to fall into place.

And remember — it’s completely okay if you don’t get a concept in the first or even second attempt. The third time’s often the charm. Just don’t give up.

CM1 may be the challenge you didn’t expect, but it’s also the subject that transforms you from a student into an actuary-in-making.

Just remember hard work and discipline is the key to your success.

Frequently Asked Questions (FAQs)

References: IFOA