A Deep Dive into Actuarial Subjects: CS1, CS2, CM1, CM2, CB1, CB2, and CB3
Embarking on the actuarial journey requires a solid foundation in various disciplines. Let’s explore some key subjects that aspiring actuaries encounter:
CS1 – Actuarial Statistics:
This subject lays the groundwork for statistical analysis, a cornerstone of actuarial science.
Coverage: Introduction to probability distributions, fitting distributions to data.
Format:
IFoA: 3 hours 20 minutes, subjective (typed answers)
IAI: 3 hours 15 minutes, 100% MCQ
Paper B (R Programming): 1 hour 50 minutes (IFoA), 1 hour 45 minutes (IAI)

CS2 – Risk Modelling and Survival Analysis:
Building upon CS1, this subject delves into advanced statistical techniques.
Coverage: Graduation, forecasting mortality rates, Markov Chains, Jump processes, Machine Learning, Reinsurance, and limits/deductibles.
Format: Same as CS1 (subjective for IFoA, MCQ for IAI)

CM1 – Actuarial Mathematics:
This subject focuses on the core mathematical principles underlying actuarial science.
Coverage: Interest rates, annuities, loan schedules, project appraisal, real yield, contingency calculations, pricing and reserving of insurance products.
Format: Same as CM1 (subjective for IFoA, MCQ for IAI). Paper B involves Excel programming.

CM2 – Financial Engineering and Loss Reserving:
This subject explores the financial aspects of actuarial work.
Coverage: Investment returns, pricing of financial products (forwards, options, derivatives), ruin calculations, and loss reserving for insurance companies with delayed claim reporting.
Format: Same as CM1 (subjective for IFoA, MCQ for IAI). Paper B involves Excel programming.

CB1 – Business Finance:
This subject provides a foundation in business finance.
Coverage: Corporate governance, business formats, ratio and financial analysis, financial statements, weighted average cost of capital, dividend and investment decisions.
Format: 3 hours 20 minutes (IFoA), 3 hours 15 minutes (IAI). Subjective for IFoA, 100% MCQ for IAI.

CB2 – Business Economics:
This subject covers both microeconomics and macroeconomics.
Coverage:
Microeconomics: Demand, supply, cost, revenue, market types.
Macroeconomics: Classical, Keynesian, New classical, Monetarism, national income accounting, relationships between goods and labor markets.
Format: Same as CB1.

CB3 – Business Management:
This subject focuses on developing essential business skills for actuaries.
Coverage: Strategic thinking, decision-making, legal principles, and professional ethics.
Format: Continuous Assessment with Final Computer Based Test (IFoA). 100% MCQ (IAI) from November 2024.

Note: Exam formats and subject content may be subject to change. Please refer to the official IFoA and IAI websites for the most up-to-date information.