IFoA CM1 case studies
IFoA CM1 · Put your knowledge to work in context.
CM1 (Actuarial Mathematics) is one of the Core Principles subjects in the Institute and Faculty of Actuaries (IFoA) qualification pathway. It is aimed at candidates working toward Associate or Fellowship status, and it is usually taken after the earlier Core Principles subjects and alongside or before the more modelling-heavy later subjects. The IFoA CM1 case studies are 5 cases and about 2,502 words.
1Charity programme funding after an investment shortfall
A charity receives a legacy of £500,000 on 1 January 2025. It plans to pay £55,000 on 1 January each year for ten years, with the first payment made immediately.
488 words, about 2 min2Forward rates and pricing a three-year coupon bond
A life insurer must pay £50 million at the end of three years. The market has liquid zero-coupon government bonds with annual effective spot yields of 3.00% for one year, 3.60% for two years and 4.00% for three years.
467 words, about 2 min3Net premium and reserve for a three-year endowment assurance
A life insurer issues a three-year endowment assurance to a life aged exactly 40. The sum assured is £100,000, payable at the end of the year of death or on survival to the end of year three.
492 words, about 2 min4Accelerated critical illness benefit and dependent probabilities
An insurer is pricing a two-year term assurance with an accelerated critical illness benefit for a life aged exactly 45. The sum assured is £150,000 and is paid at the end of the year of the first event, whether death or diagnosis of a specified critical illness.
502 words, about 3 min5Profit test and capital strain for a three-year endowment
A life insurer is profit-testing a three-year without-profit endowment assurance sold to a life aged 50. The sum assured is £100,000, payable at the end of the year of death or on survival to the end of year three.
553 words, about 3 min