CM1 is one of the most basic and important paper and is widely applicable in real life. It is a combination of CT1 & CT5 and now also includes excel practical exam, for more details you can visit here – CM1 Core Mathematics 1: First Milestone of New Curriculum.
CM1 PAPER A: Exam Tips & Tricks
- The concept of annuities, level, increasing and their different types. questions based on the calculation of annuity are seen in past years.
- Chances of One question of loan schedules (CH- 11) can be there like find annual/monthly/quarterly/half-yearly instalments, loan outstanding at a certain point, principal and interest component, revised instalment after some changes in the original loan agreement.
- Question from project appraisal using NPV or IRR or investment appraisal using MWRR, TWRR or LIRR. A comment like “which is better among TWRR and MWRR and why?” could be asked.
- The question could be asked to check immunization or log-normal distribution, or index-linked security, seen in past papers.
- My advice would be to make sure you know all types of Assurance and Annuity Contracts and how to derive their PV, EPV, Variance.
- Important CM1 Tips & Tricks in Long questions is to know all about calculating net/gross premiums and reserves with fixed/variable benefits. Study deeply these topics like Prospective and Retrospective methods of calculating Reserves and Recursive Relationship of reserves. Also, calculation using the principle of equivalence having fixed/variable benefits for with or without profit policies.
- A short question could be asked from insurance contracts having benefits contingent upon the various transition events like about Healthy, Sick and Dead.
CM1 PAPER B : Exam Tips & Tricks
- You can use the Actuarial Table and calculator. The use of the internet is not permitted
- You must continuously keep on saving your work.
- You will get an extra 15 minutes at the end of the examination to submit the sheets, complete your exam in 1.45 hrs.
- Make sure you have tested the download and uploading options before the examination (equipment checking).
- Break your calculations in different cells. Don’t try to put all the calculations in one cell as it will lead to more chances of mistakes.
- In summary sheet (where we have to provide only answers) after each question do not copy-paste the answer to each part instead give reference to that cell.
- If you face any problem during the examination contact the education team at [email protected] or [email protected]
- One important concept which can be asked in small question or in theory way is from Unit Linked Contracts.
- A big question can be asked from profit testing (CH- 27& 28) to show how profit testing can be used to calculate premiums, set reserves, calculating fund values at end of the year, NPV of profit, profit margin, etc.
Some General Advice:
- During the exam, solve questions which you know first and do not get stuck up in one question, move to another if you are not able to solve one.
- Focus on theory as much as you are focusing on practical. Do not leave theory for end, make your notes as you study. Theory and small question (2-5 marks) may add up to 20 marks.
- Another advice is to not to write too long for questions that carry fewer marks or don’t write too less for questions that carry good marks. Please remember 1 marks = 1.8 minutes of exam time. Write longer questions first as they are more scoring. Small questions might be some times tricky and may waste your time.
- Learn to understand the concept as you may be asked to give “comment”, these comments can be given only if you have conceptual clarity of the topic.
- Another advice would be to learn formulae which will make your concepts clear, so try to understand and derive them. Do not rely on tables for basic formulae completely.
- Many students face the problem of lack of practice so solve Question Bank and X series along with past exam papers (minimum past 6 years paper). Don’t just go through it, solve. You can also find more tips and past year papers: https://www.actuaries.org.uk/studying/prepare-your-exams
Apart from these, your dedication and practice are what matters most. Work hard and all the best!