IAI CP3 study guide
IAI CP3 · Work through your exam, one topic at a time.
The IAI CP3 (Certified Professional 3) is a professional-level actuarial credential awarded by the Institute of Actuaries of India. It sits above the earlier professional stages and is aimed at actuaries who have moved beyond core technical subjects into applied practice: risk management, specialist practice areas, professionalism, and business awareness. The IAI CP3 study guide has 11 sections and about 2,509 words.
01Actuarial Risk Management (Subject CA1)
This domain tests how candidates identify, measure, manage and monitor risk within an insurer or pension scheme, and how the actuarial control cycle links assumptions, experience and capital. Expect questions on risk classification, risk appetite, governance and stakeholder communication.
260 words, about 1 min02Life Insurance and Pensions Practice
This domain tests product design, pricing, reserving and solvency for life insurance and pension arrangements. It expects candidates to connect mortality, interest, expense and lapse assumptions to premiums, policy liabilities and pension funding.
241 words, about 1 min03General Insurance Practice
This domain tests underwriting, pricing, claims, reserving and reinsurance for non-life business. Candidates must link loss experience, expenses, cat risk and capital to technical provisions and underwriting decisions.
224 words, about 1 min04Health and Care Insurance Practice
This domain tests morbidity-based products, provider arrangements, pricing and reserving for health and care risks. It covers private medical insurance, critical illness, disability and long-term care.
229 words, about 1 min05Financial Markets and Products
This domain tests valuation and risk of bonds, equities, derivatives and structured products, and how markets transmit risk to insurers and pension schemes. Bond prices move inversely to yields.
221 words, about 1 min06Communications
This domain tests whether candidates can explain actuarial work clearly to non-actuaries, choose appropriate evidence and communicate uncertainty professionally. It rewards structure, audience awareness and data integrity.
228 words, about 1 min07Modelling and Professionalism
This domain tests the model lifecycle and the professional judgements around assumptions, validation, documentation and use of output. Models simplify reality; model risk is the risk of wrong decisions from model error or misuse.
203 words, about 1 min08Business Awareness and Ethics
This domain tests commercial context and professional conduct: how insurers create value, who is affected, and how actuaries handle conflicts. Business awareness includes capital, distribution, competition and regulatory constraints.
222 words, about 1 min09Data Science and Technology Applications
This domain tests the use of data, statistical models and technology in actuarial work, with emphasis on governance and reliable inference. Data quality covers completeness, accuracy, consistency, timeliness and granularity.
220 words, about 1 min10Regulation and Capital Management
This domain tests prudential regulation, capital requirements and how insurers allocate capital to risk. Regulation protects policyholders, promotes market confidence and requires fit and proper governance.
231 words, about 1 min11Investment and Asset-Liability Management
This domain tests how assets are selected and managed to meet liability cash flows, capital needs and risk appetite. ALM matches asset cash flows, duration, currency and liquidity with liabilities.
230 words, about 1 min