CAS Exam 7 study guide
CAS Exam 7 · Work through your exam, one topic at a time.
Exam 7 sits in the FCAS tier of the Casualty Actuarial Society's exam ladder, alongside Exam 8 and Exam 9, and comes after the ACAS exams (Exams 1 and 2, MAS-I, MAS-II, the CAS DISCs, the Course on Professionalism, Exam 5, PCPA, and an Exam 6 variant). The CAS describes itself as the trusted global authority advancing property and casualty actuarial science, with nearly 12,000 members worldwide, and it delivers credentialing, research, and professional development grounded in real-world application. Exam 7 is aimed at candidates who have cleared the associateship requirements and are working toward Fellowship; its subject matter spans estimation of liabilities, valuation, and enterprise risk management, the technical territory of reserving and risk work that senior P&C actuaries do day to day. Preparation should follow the official syllabus and its listed readings rather than third-party shortcuts: work through the source material, build your own formula and method summaries, and practice under timed conditions using past exams and pass marks published by the CAS. Note that the CAS's own Exam 7 URL currently returns a 404 page, so confirm syllabus details, format, and scheduling through the CAS exams and admissions pages, the Candidate FAQ, and the exam schedule before you plan your study calendar. This page is independent study material and is not affiliated with or endorsed by the CAS. Topics on this exam: Estimation of Liabilities, Valuation, and Enterprise Risk Management. The CAS Exam 7 study guide has 1 section and about 1,140 words.
01Estimation of Liabilities
Exam 7 tests liability estimation beyond basic chain-ladder mechanics: selecting among expected-loss-ratio, chain-ladder, Bornhuetter-Ferguson (BF), Cape Cod and stochastic methods, diagnosing development patterns, and quantifying reserve uncertainty. Answers are judged on whether the method's assumptions match the data and whether uncertainty is communicated clearly. Chain ladder applies cumulative development factors to reported amounts; it is most credible for mature, stable accident years. Expected loss ratio (ELR) sets ultimate as premium multiplied by ELR, independent of reported losses.
1,140 words, about 6 minMore study resources for CAS Exam 7
- Practice questionsIn reserving, the expected loss ratio method projects ultimate losses by multiplying which quantity by the selected expected loss ratio?
- FlashcardsExpected loss ratio method. Ultimate losses are earned premium multiplied by a selected loss ratio.
- Cheat sheetExpected loss ratio method: ultimate = earned premium × selected loss ratio; appropriate when premium is credible but loss experience is thin, as in new or recently re-underwritten lines.
- Key termsCase outstanding. The dollar amount a claims adjuster currently sets aside for a specific reported claim, based on known facts.
- Study planMap the entire Exam 7 syllabus into a one-page topic inventory covering reserving, valuation, and ERM subtopics, then rank each by expected exam weight and personal weakness.
- Common mistakesCandidates memorize the Mack variance formula as a single plug-in expression and never internalize that the total mean squared error of the reserve combines two distinct sources; exam questions frequently ask for one component or for the effect of aggregating across accident years, and under time pressure candidates default to the familiar total and skip the decomposition.
- Exam-day guideBring the exact ID the testing provider requires (typically a current passport or driver's license with matching name).