CAS Exam 7 study plan
CAS Exam 7 · Give each week a clear focus.
8 weeks · About 7 hours per week
Estimation of Liabilities, Valuation, and Enterprise Risk Management
Map 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.
Build a formula sheet for incurred-but-not-reported (IBNR) estimation that distinguishes chain-ladder, Bornhuetter-Ferguson, and expected-loss methods by their assumptions and data requirements.
Work through at least 15 reserving practice problems, writing the full calculation path for each rather than just the final number.
Draft a written explanation of why development-factor selection changes reserve adequacy, using a numeric example you compute yourself.
Your checkpoint
A one-page syllabus map plus a 2-page formula sheet, both cross-checked against at least 15 solved reserving problems with full workings shown.
Estimation of Liabilities, Valuation, and Enterprise Risk Management
Derive and compare the Mack chain-ladder standard error and the bootstrap-overdispersed-Poisson approach for quantifying reserve uncertainty.
Compute reserve ranges for a small triangle by hand and by spreadsheet, then reconcile any differences.
Explain how case outstanding, development on reported claims, and frequency-severity methods interact when a triangle is thin or immature.
Identify the three most common reserving pitfalls (e.g., leveraging immature years, ignoring diagonal effects) and write a countermeasure for each.
Your checkpoint
A spreadsheet model of a sample loss triangle that produces point estimates from three methods and a bootstrap-based reserve distribution, with a 300-word memo on which estimate you would book and why.
Estimation of Liabilities, Valuation, and Enterprise Risk Management
Summarize the reserving implications of discounting, reinsurance recoverables, and Schedule P data limitations, and state how each affects booked versus indicated reserves.
Compare reserving methods for long-tail versus short-tail lines and justify the choice for two different lines of business.
Solve 10 mixed-format problems that require selecting a method before computing, to practice judgment under exam time pressure.
Write out the assumptions behind the Bornhuetter-Ferguson method and explain what breaks when the initial expected loss ratio is badly wrong.
Your checkpoint
A 1,000-word comparison note on reserving method selection across two lines of business, backed by 10 fully worked judgment-style problems.
Estimation of Liabilities, Valuation, and Enterprise Risk Management
Build a valuation framework that links loss reserves, unearned premium reserves, deferred acquisition costs, and reinsurance assets into a balance-sheet view.
Explain how discounting and risk margins affect the fair value of liabilities under a principles-based approach.
Work through 12 valuation problems covering premium deficiency, DAC amortization, and reinsurance asset impairment.
Draft a list of the five valuation judgments most likely to be tested and the reasoning chain expected for each.
Your checkpoint
A balance-sheet reconciliation exercise showing how a change in loss reserves flows through surplus, plus 12 solved valuation problems.
Estimation of Liabilities, Valuation, and Enterprise Risk Management
Define the ERM framework components (risk appetite, governance, risk identification, quantification, and monitoring) and map each to insurance-specific examples.
Distinguish economic capital, regulatory capital, and rating-agency capital, and explain how each is calculated and used.
Compute a simple economic capital figure using a loss distribution and a chosen risk measure (VaR or TVaR), documenting every assumption.
Explain the difference between risk tolerance and risk appetite and give a concrete statement of each for a hypothetical insurer.
Your checkpoint
A 1,200-word ERM framework summary with a worked economic capital calculation and explicit assumption log.
Estimation of Liabilities, Valuation, and Enterprise Risk Management
Analyze enterprise risk categories (underwriting, market, credit, operational, strategic) and identify which are most material for a property-casualty insurer.
Explain how reinsurance, hedging, and capital allocation serve as risk mitigation tools, including their limitations.
Work through 10 ERM problems involving capital allocation, risk-adjusted return on capital, and reinsurance optimization.
Critique a sample risk register and propose three improvements with justification.
Your checkpoint
A risk register critique plus a capital-allocation worksheet with 10 solved ERM problems.
Estimation of Liabilities, Valuation, and Enterprise Risk Management
Integrate reserving, valuation, and ERM into a single narrative: how reserve uncertainty feeds capital requirements and risk appetite.
Complete a full-length timed practice exam under exam conditions and score it strictly against a rubric.
Categorize every missed question by root cause (knowledge gap, calculation error, misread, or time pressure) and rank the causes by frequency.
Re-solve every missed problem from scratch without notes and verify the corrected answer.
Your checkpoint
A scored full-length practice exam with a root-cause error log and a ranked remediation list.
Estimation of Liabilities, Valuation, and Enterprise Risk Management
Re-drill the top five weakest subtopics identified in the error log until you can solve representative problems cold.
Rebuild the formula sheet from memory and compare it against the week-1 version to confirm retention.
Practice written-answer construction: state the assumption, show the calculation, and state the conclusion in each response.
Run two 90-minute mixed-topic mock sessions and track your pace per question against the real exam's time budget.
Your checkpoint
A final one-page condensed review sheet written entirely from memory, plus two timed mock-session score reports showing improvement over week 7.
Milestones
Week 2: Can compute point estimates via chain-ladder, Bornhuetter-Ferguson, and expected-loss methods on an unfamiliar triangle and explain which is most appropriate.
Week 4: Can trace a reserve change through the balance sheet to surplus and score at least 70% on a self-made 20-question reserving-and-valuation quiz.
Week 6: Can calculate economic capital from a loss distribution and articulate how it links to risk appetite and capital allocation.
Week 7: Full-length practice exam completed under time with a root-cause error log; identify the three highest-frequency error causes.
Week 8: Condensed review sheet reproduced from memory and both timed mock sessions scored at or above your target pass threshold.