CM1

This course will be updated weekly for April 2025 Attempt. We plan to end this course by 1st March 2025. Doubt clearing sessions will start from Feb 2025 and details will be mailed to registered students.

Details of CM1 are given below:-

CM1 (Actuarial Mathematics) is a core module in the actuarial curriculum. It is designed to equip students with the mathematical techniques used in actuarial modeling, including theory and applications in financial and insurance contexts.

Key Topics in CM1:

1. Compound Interest and Annuities:

   • Time value of money
   • Present value and future value
   • Annuities (immediate and due)

2. Investment and Asset Valuation:

   • Bond pricing
   • Yield rates
   • Project appraisal techniques

3. Loan Schedules:

   • Amortization
   • Sinking funds

4. General Insurance Pricing and Reserving:

   • Premium calculations
   • Claims reserving methods

5. Life Insurance Contracts:

   • Assurance and annuity contracts
   • Policy values

6. Mortality and Contingencies:

   • Survival models
   • Mortality tables
   • Life tables and assurance functions

7. Stochastic Processes:

   • Markov chains and models
   • Applications in insurance and finance

8. Profit Testing:

   • Cash flow projections
   • Profit vectors and reserves

9. Risk Modeling:

   • Deterministic and stochastic models
   • Applications in financial risks and insurance

Exam Structure:

• CM1A (Written Paper): Focuses on theoretical concepts and mathematical derivations.
• CM1B (Computer-Based Assessment): Tests application through the use of Excel-based modeling and calculations.

This paper serves as a foundation for understanding actuarial techniques applied to financial and insurance risks, preparing candidates for advanced actuarial studies.