IAI CS2 case studies

IAI CS2 · Put your knowledge to work in context.

CS2, Actuarial Statistics, is one of the technical subjects in the Institute of Actuaries of India's actuarial examination pathway. It sits alongside the modelling and economics subjects and is normally attempted after the core mathematics and probability material, because it assumes fluency with distributions, likelihood, and matrix algebra. The syllabus is built around six linked areas: survival models and lifetime distributions; estimation and graduation of those models; regression models for survival data, including Cox proportional hazards and parametric alternatives; generalised linear models; Bayesian statistics and computational methods; and statistical modelling in R. The through-line is applied modelling: you are expected to specify a model, estimate it, check it, and interpret it, not merely derive formulae. The IAI CS2 case studies are 5 cases and about 3,504 words.

Term assurance pricing with a short select period and sparse duration data

An insurer is pricing a 10-year renewable term assurance for 45-year-old non-smokers. A pilot portfolio contains 2,400 policies observed for four years.

764 words, about 4 min 2

Graduating pensioner mortality when the oldest ages are thin

A closed defined-benefit pension scheme has 8,500 pensioners aged 60 to 95. You are graduating pensioner mortality by 5-year age bands.

744 words, about 4 min 3

Cox model with a delayed treatment effect in a melanoma trial

A randomised trial enrols 480 patients with advanced melanoma; 240 receive immunotherapy and 240 receive standard care. After median follow-up of 3 years there are 210 deaths.

693 words, about 3 min 4

Overdispersion in group health claim counts and the exposure offset

A health insurer models annual claim counts for 12,000 group policies. The Poisson GLM uses a log exposure offset in policy-years and covariates for age band, region and a chronic-condition flag.

646 words, about 3 min 5

Bayesian mortality estimation for a small group and a planned hierarchical model

A small closed group life portfolio has 1,200 life-years of exposure and 8 deaths. The chief actuary proposes a Bayesian analysis of the force of mortality mu, using an informative Gamma(2, 200) prior based on a larger industry table; this prior has mean 0.01 and standard deviation about 0.0071.

657 words, about 3 min