CM2 Full Course

CM2-Economic Modelling

₹25,700.00

CM2 – Economic Modelling – Regular Course.
Faculty: Praveen Patwari
Course Duration: 200+ hours

Category:

📘 Economic Modelling

CM2 Economic Modelling focuses on the application of mathematical and statistical techniques. It combines financial engineering, derivatives, and loss reserving methods to prepare actuaries for investment, risk, and insurance roles.These are required for valuing financial derivatives and modelling insurance liabilities, mainly focusing on understanding and applying models for option pricing, asset valuation, and reserving techniques. Alongside this, the related and required understanding of stochastic processes, risk-neutral valuation, and simulation methods to assess financial and insurance risks is 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 CM2 Important?

  • CM2 builds the modelling foundation you need for real-world actuarial work in finance, insurance, and risk.
  • CM2 helps you to know how to price options, futures and other derivatives using stochastic models like Black-Scholes and binomial tree.
  • It helps you in learning techniques to estimates reserves for claims using methods such as run-off triangles and chain ladder techniques.
  • You can also give CP2 (Modelling Practice) along with CM2 – a good combo for knowledge as CP2 is also an Excel based paper and it includes modelling.

🧠 Main Topics in CM2 (Subjective)

CM2 covers both theoretical and practical topics like:

  • Stochastic interest rate & investment models
  • Derivatives: options, futures, swaps, hedging
  • Risk-neutral valuation & pricing
  • Asset-liability management strategies
  • Loss reserving techniques & claims triangles
  • Run-off analysis and simulation models
  • Excel-based financial & reserving applications

💼 Where Can You Use CM2 Knowledge?

  • General Insurance: Estimating claim reserves.
  • Investment Banking: Pricing and hedging derivatives.
  • Risk Management: Managing market & credit risk.
  • Portfolio Management: Asset-liability modeling and investment strategies.

📝 How to Prepare for CM2?

  • Focus on building the understanding on the topics stochastic models, derivative pricing, arbitrage-free pricing, loss reserving methods & simulation techniques.
  • Start practicing the Paper B Material early and master different Excel shortcuts and functions like offset, frequency and many more.
  • After completing the syllabus two times with revision, start solving the PYPs and give Mock Tests.

📑 Structure of CM2

CM2 is divided into two parts:

Component Exam Format Duration
CM2A – Theory IAI: Computer-Based Objective + Subjective
IFoA: Written theory (MS Word)		 3 hours 15 minutes
CM2B – Practical Excel-based application test using real actuarial problems 1 hour 45 minutes

📚Topics Covered and their Weightings

Topic Weightage
Rational economic theory 10%
Measures of investment risk 10%
Asset valuations 30%
Liability valuations 20%
Option theory 30%

📊 Passing Criteria

Institute Passing Marks
IAI (India) 50% (Fixed); 30% in both Paper A and Paper B
IFoA (UK) 56%–65% (Varies by term)
WHAT YOU WILL GET

Course Deliverables

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Recorded lectures (A + B )
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Soft copy of resources
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Access to Student dashboard
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100% Placement & Training Assistance
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Technical support
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Practice papers
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Chapter wise MCQ Bank
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1:1 mentoring sessions
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Live Industry expert sessions
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Live concept classes ( A + B )
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Mock Test with Detailed evaluation (2 Sets)
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Hard copy of Revision Notes of Latest Version
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Doubt solving sessions
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Course extension (2 more terms)
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Interactive Q & A Forum

Praveen SanchetiAIR 1
Aditya ChaudharyAIR 1
Mokshit KothariAIR 1
Yash Agarwal90
Girdhari89
Khyati Soni88
Mrigank Agarwal86
Nikhilesh Poddar86
Vandita Sarda85
Siddharth Sonthalia85

FACULTY

Meet The Instructor


Praveen Patwari is a Qualified Chartered Accountant who has cleared 14 out of 15 Actuarial Science papers. He began teaching in high school and has trained 5000+ students. Known for his captivating attitude and intelligence, he has produced top scorers in Actuarial Science across India with 8 times AIR 1 in CM1. His journey demonstrates persistence, discipline, and deep knowledge, making him a sought-after speaker. He has delivered sessions at prestigious institutions like SRCC, Miranda House, Hansraj College, Lady Shri Ram, St. Xavier’s College, BESC and Ramjas College.

Shivangee Agarwal is a Qualified Actuary with a Master’s in Data and Business Analytics from IIM Indore. She secured All India Rank 1 in CT7 – Business Economics and holds a B.Com (Hons in Finance) from St. Xavier’s College, Kolkata. Over 6+ years, she has taught 2500+ students in Actuarial and Data Analytics domain, becoming a favourite coach for CS2, CB2, CP2, and CP3 papers. She has expertise in Excel and R Programming. Her inspiring journey led her to conduct workshops and lectures at various colleges like Lady Shri Ram College, St. Xavier’s College, SRCC, Mithibai College, IIM Indore and IBS Hyderabad.

Aditi Bhavsar began her actuarial journey in 2022 and has cleared 6 IFoA papers. With 1 year of teaching experience, she now mentors students for CM1 and CM2. Aditi is dedicated to helping students succeed with her clear and supportive approach.

PLAYLIST

Demo Class Videos


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