📘 Business Economics

CB2 Business Economics equips actuarial students with a solid understanding of microeconomics and macroeconomics. It explains how markets function, how individuals and firms make decisions, and how economic policies impact businesses and financial systems. This paper ensures actuaries can interpret economic trends and apply them to insurance, pensions, and investments. Alongside this, the related and required understanding of market structures, consumer behaviour, national income, monetary and fiscal policy, and international trade are also developed. It is available through both the institutes, the Institute of Actuaries of India (IAI) and the UK-based Institute and Faculty of Actuaries (IFoA).

🔍 Why is CB2 Important?

Provides the economic foundation for actuarial decision-making.
Helps actuaries understand market structures, inflation, interest rates, and fiscal/monetary policy.
Builds awareness of the global economic environment and its impact on financial markets.
Crucial for interpreting economic risks in insurance, pensions, and investments.
You should give CS1 (Actuarial Statistics) along with CB2 – a good combo for knowledge.

🧠 Main Topics in CB2 (Subjective)

CB2 covers theoretical knowledge like:

Micro-Economics
- Demand & Supply.
- Consumer behaviour, elasticities and utility theory.
- Market structure & Pricing strategies.
Macro-Economics
- National income accounting – GDP, GNP.
- Economic growth and development.
- Unemployment & Inflation.
- Fiscal and monetary policies.

💼 Where Can You Use CB2 Knowledge?

Pricing and reserving – considering inflation forecast when setting premium rates or reserving for future claims.
Making Investment strategies.
Business planning and forecasting.
Communicating with stakeholders – explaining the economic rationale behind assumptions to boards, regulators and client.

📝 How to Prepare for CB2?

Build a strong conceptual foundation of topics such as demand, supply, inflation, unemployment and development.
Focus on graphs, models, and real-world applications.
After completing the syllabus two times with revision, start solving the PYPs and give Mock Tests and learn from examiner reports.
You can combine CB2 paper along with CS1 – a good combo for actuarial profession.

📑 Structure of CB2

Component	Exam Format	Duration
CB2	IAI: Computer-Based MCQ IFoA: Written theory (MS Word)	3 hours 15 minutes

📚Topics Covered and their Weightings

Topic	Weightage
Economic schools, the economic way of thinking and recent historical applications	5%
Micro-economics	40%
Macro-economics	55%

📊 Passing Criteria

Institute	Passing Marks
IAI (India)	50% (Fixed)
IFoA (UK)	56%–65% (Varies by term)

Shivangee Agarwal	AIR 1
Anmol Bansal	AIR 1
Ashmal Azeem	89
Saloni Khanna	89
Shlok Jain	88
Ayush	87
Madhav Kumra	86
Vidisha Mittal	86
Shubham Banthia	86
Abhishek Khaire	85

CB2-Business Economics

📘 Business Economics

🔍 Why is CB2 Important?

🧠 Main Topics in CB2 (Subjective)

💼 Where Can You Use CB2 Knowledge?

📝 How to Prepare for CB2?

📑 Structure of CB2

📚Topics Covered and their Weightings

📊 Passing Criteria

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