Fundamentals of Actuarial Mathematics (FAM) - All English

Fundamentals of Actuarial Mathematics (FAM) – All English

₹22,100.00

FAM – Fundamentals of Actuarial Mathematics – Regular Course
Faculty: Devansh Dhona
Course Duration: 100+ hours

Category:

SOA Exam FAM – Fundamentals of Actuarial Mathematics

Develop Expertise in Actuarial Risk Modelling, Insurance Pricing and Reserving

Exam FAM – Fundamentals of Actuarial Mathematics is an actuarial examination conducted by the Society of Actuaries (SOA), USA, and forms part of the pathway towards the Associate of the Society of Actuaries (ASA) designation.

The examination focuses on applying mathematical and actuarial principles to model insurance risks, calculate premiums, estimate reserves and evaluate financial obligations.

Exam FAM combines short-term insurance modelling, loss distributions, ratemaking, reserving, mortality models and long-term insurance contingencies, developing essential technical and analytical skills for actuarial practice.

The subject builds upon the fundamental concepts of probability and financial mathematics, connecting mathematical theory with practical applications in life insurance, general insurance and financial risk management.

Course Structure & Syllabus

Exam FAM covers actuarial methods used in both short-term and long-term insurance modelling.

Key Topics Covered:

  1. Short-Term Insurance & Reinsurance Coverages:
    Policy deductibles, limits, coinsurance, loss modifications, proportional and excess-of-loss reinsurance and their impact on insurance payments.
  2. Loss Models & Probability Distributions:
    Claim severity, claim frequency, aggregate loss models, compound distributions, expected losses and statistical modelling of insurance claims.
  3. Statistical Estimation & Credibility Theory:
    Parametric estimation, maximum likelihood estimation, method of moments, credibility models and applications to insurance experience.
  4. Short-Term Insurance Pricing & Reserving:
    Ratemaking principles, loss ratio methods, claims development triangles, chain ladder, Bornhuetter-Ferguson methods and outstanding claims reserves.
  5. Option Pricing Fundamentals:
    Financial derivatives, option payoffs, binomial pricing models, Black-Scholes valuation, risk-neutral pricing and put-call parity.
  6. Mortality & Survival Models:
    Life tables, mortality rates, survival probabilities, force of mortality, future lifetime models and life expectancy calculations.
  7. Long-Term Insurance Valuation, Premiums & Reserves:
    Life assurance, annuities, actuarial present values, premium calculations, policy values, prospective reserves and retrospective reserves.

The Exam FAM syllabus focuses on insurance risk modelling, actuarial valuation, probability distributions, premium calculation and reserving techniques, developing essential competencies for actuarial applications.

Syllabus Topics & Weightages

The SOA Exam FAM syllabus covers ten principal areas:

Topic Approximate Weightage
Short-Term Insurance and Reinsurance Coverages 5–10%
Severity, Frequency and Aggregate Models 12.5–17.5%
Parametric Estimation 2.5–7.5%
Introduction to Credibility 2.5–5%
Pricing and Reserving for Short-Term Coverages 10–15%
Option Pricing Fundamentals 2.5–7.5%
Long-Term Insurance Coverages and Retirement Programs 2.5–5%
Mortality Models 10–15%
Present Value Random Variables 12.5–20%
Premium and Policy Value Calculations 15–22.5%

Topic weightages are indicative ranges rather than fixed percentages. Actual question distribution may vary between examination sittings.

Examination Structure

Exam FAM is a computer-based multiple-choice examination assessing actuarial modelling concepts and their practical applications in insurance and finance.

Particulars Details
Examination SOA Exam FAM – Fundamentals of Actuarial Mathematics
Conducting Body Society of Actuaries (SOA)
Examination Format Multiple-Choice Questions
Total Questions 34
Examination Duration 3 Hours 30 Minutes
Examination Mode Computer-Based Testing (CBT)
Examination Centre Authorised Prometric Test Centres
Negative Marking No
Examination Windows As announced in the official SOA examination schedule

Important Examination Guidelines

  • Multiple-Choice Examination:
    Candidates must solve 34 actuarial mathematics questions within 3 hours and 30 minutes.
  • Short-Term Insurance Applications:
    Questions assess loss distributions, claim frequency and severity, ratemaking, reinsurance and reserving.
  • Long-Term Insurance Applications:
    Questions assess mortality models, life contingencies, actuarial present values, premiums and policy values.
  • Calculators:
    Only calculators approved under SOA examination rules are permitted.
  • Reference Material:
    Applicable actuarial tables are provided during the examination according to SOA guidelines.
  • Examination Booking:
    Candidates must register through the SOA and schedule their examination within the applicable testing window.
  • Examination Conduct:
    Candidates must comply with SOA and Prometric identification, security and examination regulations.

Eligibility Criteria

Exam FAM is suitable for actuarial students progressing beyond introductory probability and financial mathematics.

  • No prior actuarial examination pass is required solely to register for Exam FAM.
  • A strong understanding of SOA Exam P – Probability and Exam FM – Financial Mathematics concepts is recommended.
  • Knowledge of mathematical statistics, probability distributions and financial valuation is beneficial.
  • Students from Mathematics, Statistics, Finance, Economics, Engineering and other quantitative backgrounds may prepare for the examination.
  • Candidates must meet SOA’s applicable registration, identification and examination entry requirements.

Learning Objectives

Studying Exam FAM develops the ability to:

  • Understand and apply actuarial models to insurance risks.
  • Analyse claim frequency, severity and aggregate losses.
  • Apply statistical estimation and credibility techniques.
  • Calculate premiums for short-term insurance coverages.
  • Estimate outstanding claims reserves using actuarial methods.
  • Understand mortality, survival models and life tables.
  • Calculate actuarial present values of insurance benefits.
  • Determine premiums and reserves for long-term insurance contracts.
  • Apply actuarial mathematics to financial and insurance risk assessment.

Practical Applications of Exam FAM

The knowledge gained in Exam FAM is applicable across several actuarial and financial disciplines:

  1. Life Insurance:
    Calculating premiums, valuing life insurance benefits, estimating policy reserves and analysing mortality risks.
  2. General Insurance:
    Modelling claim frequency and severity, estimating outstanding claims liabilities and developing insurance premiums.
  3. Health Insurance:
    Evaluating claim distributions, insurance coverage structures and financial risks associated with healthcare benefits.
  4. Reinsurance:
    Analysing risk transfer arrangements, deductible structures, policy limits and reinsurance recoveries.
  5. Actuarial Valuation & Risk Management:
    Modelling uncertain financial obligations, estimating insurance liabilities and applying mathematical techniques to risk assessment.

Exam FAM establishes essential actuarial knowledge that supports more advanced SOA examinations, particularly Advanced Long-Term Actuarial Mathematics (ALTAM) and Advanced Short-Term Actuarial Mathematics (ASTAM).

Technical Requirements – AEI Learning Application

To access online classes, recorded lectures and digital study resources, students must ensure their devices meet the following minimum technical requirements of the Actuators Educational Institute (AEI) Learning Application.

Device / Platform Minimum Requirement
Android Android 9.0 or above
Windows PC / Laptop Windows 10 or above
iPhone / iPad (iOS) iOS 12.0 or above
MacBook / iMac (macOS) Apple M1 chip or above with macOS 14 or later
WHAT YOU WILL GET

Course Deliverables

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Recorded Lectures
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Live Discussion & Practice Sessions
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Softcopy of AEI Own Study Materials
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Access to Student Dashboard
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Technical Support
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Chapter Wise MCQ Bank
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Course Extension (2 More Terms)
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Interactive Q & A Forum

Mukti BanganiCleared
Kirti JindalCleared

FACULTY

Meet The Instructor


Devansh Dhona is an accomplished actuarial professional who has cleared 10 out of 13 actuarial papers and secured All India Rank 1 in CP2. A B.Com (Hons.) graduate from St. Xavier’s College, Kolkata, he brings strong technical knowledge along with practical experience from the General Insurance industry.

At Actuators Educational Institute, Devansh teaches ACET, CP2 and SOA FAM. His teaching approach focuses on conceptual clarity, structured problem-solving, and application-oriented learning, helping students build strong fundamentals and approach actuarial examinations with greater clarity and confidence.

PLAYLIST

Demo Class Videos


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