IFoA CB2 case studies
IFoA CB2 · Put your knowledge to work in context.
CB2 is one of the subject codes in the Institute and Faculty of Actuaries (IFoA) examination system, part of the professional qualification route that leads to actuarial fellowship. The IFoA describes its qualification pathway as combining exams with Personal and Professional Development, where practical work experience is a key part of the qualification, and it publishes curriculum information, exam dates and essential resources through its Exams pages. The IFoA CB2 case studies are 5 cases and about 3,587 words.
1Capped RPI Liabilities, a CPI Switch and an Inflation Swap
A UK defined benefit pension scheme has £1.4bn of technical provisions, of which 70% relates to pensioners already in payment. Pensions in payment increase annually in line with RPI, subject to a cap of 5% and a floor of 0%.
796 words, about 4 min2Flood Cover Take-Up Below Plan: Behavioural Diagnosis and Repricing
Northern Shield, a UK general insurer, launched a household flood product in a coastal region eighteen months after a one-in-fifty-year flood. The government's subsidised scheme had been withdrawn.
700 words, about 4 min3Duration Gap and a 250bp Tightening Cycle
EuroLife, a UK life insurer, holds £5.0bn of fixed-interest assets with a modified duration of 9.2 years and £4.8bn of annuity liabilities with a modified duration of 13.5 years. It holds no interest rate derivatives.
705 words, about 4 min4A Currency Peg Abandoned: PPP, UIP and Group Solvency
A UK insurer writes specialist commercial property cover through a subsidiary in the Republic of Marland, whose currency (the MAR) has been pegged to the US dollar at 7.80, with a ±2% band, for nine years. Marland inflation is 9.0% a year against 2.5% in the UK, and local government bonds yield 11.0% against 4.0% on US Treasuries.
709 words, about 4 min5Motor Portfolio: Claims Inflation, Price Comparison Sites and a Loss-Making Segment
Midway Mutual is a UK motor insurer with 800,000 policies. In 2024 its combined ratio was 112%, having been 98% in 2022.
677 words, about 3 min