IAI CS1 case studies
IAI CS1 · Put your knowledge to work in context.
CS1, Actuarial Statistics, is a Core Principles subject in the Institute of Actuaries of India (IAI) actuarial examination system. The IAI is a statutory body established under The Actuaries Act 2006 (35 of 2006) for regulation of the profession of Actuaries in India. CS1 is aimed at candidates who have entered the IAI actuarial pathway - typically through ACET or the Non-ACET (Direct Entry) route - and who need a rigorous grounding in probability and statistical methods before moving to more specialised subjects. The subject covers the statistical foundations used throughout actuarial work: probability distributions, random variables, generating functions, sampling distributions, estimation, hypothesis testing, regression and related modelling ideas. The IAI CS1 case studies are 5 cases and about 3,473 words.
1Deductible, Inflation, and Tail Risk in Aggregate Claims
A motor insurer is validating its aggregate claims model for 1,200 comprehensive policies over one year. Claim frequency is modelled as Poisson with mean 0.14 per policy-year; claim severity is lognormal with mean 4,500 and standard deviation 7,200.
726 words, about 4 min2Non-Proportional Hazards and Informative Censoring in a Cancer Trial
A three-centre randomised trial compares a new treatment with standard care in 240 patients with a rare cancer. The primary endpoint is time to progression.
701 words, about 4 min3Overdispersed Claim Counts: Poisson, Negative Binomial, or Zero-Inflated?
An insurer models annual household claim counts using policy-year records from 12,400 policies. The exposure offset is log(policy-years), and the candidate mean structure includes policy age, region, and a no-claims discount band.
708 words, about 4 min4Residual Seasonality and a Pandemic Shock in Monthly Claim Counts
Monthly claim counts for a personal accident portfolio are available from January 2015 to December 2024, 120 observations. An ARIMA(1,1,1)(0,1,1)12 model selected by AIC gives a Ljung–Box p-value of 0.02 and a residual autocorrelation of 0.24 at lag 12.
614 words, about 3 min5Credibility Premium after a Safety Programme Change
A workers’ compensation pool has 25 employers with between one and six years of experience. For employer A, four years of exposure produce 38 claims; the manual rate predicts 30 claims for the same exposure.
724 words, about 4 min