IFoA CM1 study plan

Derive the force of interest from an accumulation function and convert fluently between effective, nominal and continuous rates

Build a personal formula sheet covering annuities-certain (immediate, due, deferred, increasing) and verify each identity numerically in a spreadsheet

Solve 25 equations-of-value problems involving multiple dated cashflows, including fractional-time discounting

Compute present and accumulated values for continuous payment streams and check against discrete approximations

Apply duration, convexity and immunisation conditions to small portfolios and interpret the results

Distinguish spot, forward and par yields and price a coupon bond from a given spot-rate curve

Derive mean and variance of lognormal asset returns and compute probabilities of exceeding a threshold

Explain how a simple random-walk or lognormal model is used to model asset returns in actuarial work

Construct cashflow models for a simple life contract and define the present-value random variable for each benefit type

Derive expected present values from first principles using sum and integral expressions

State and apply the equivalence principle to calculate a premium for a given benefit structure

Compute the variance of the present-value random variable for a simple whole-life assurance

Compute assurance and annuity functions from a life table, including temporary and deferred variants

Convert between commutation functions and direct summation, and verify at least five standard identities

Calculate gross and net premiums allowing for expenses and interpret the resulting premium basis

Set up and evaluate prospective and retrospective reserves for a simple endowment assurance

Fit and compare Gompertz and Makeham laws to a given set of mortality rates and comment on goodness of fit

Explain the mechanics of selection and compute select mortality rates from a select-and-ultimate table

Build a multiple-decrement table and convert between dependent and independent rates

Set up a multiple-state model with transition intensities and write the Kolmogorov forward equations for a simple three-state case

Build a profit-testing model for a with-profits or unit-linked contract and project reserves, cashflows and profit signatures

Compute the internal rate of return and net present value of the projected profit stream

Decompose the change in surplus into interest, mortality, expense and persistency components

Interpret how a change in the reserving basis alters the emergence of profit

Identify the components of a life insurer's required capital and explain how each is calibrated

Explain the role of a risk-based solvency regime and how technical provisions are calculated

Describe the main risks (insurance, market, credit, operational) and how they interact in a capital assessment

Use a simple stochastic model to illustrate how asset shocks affect available capital

Compare defined-benefit and defined-contribution benefit structures and the funding implications of each

Compute the cost of a simple defined-benefit promise using projected-unit and accrued-benefit approaches

Explain how salary growth, inflation and mortality assumptions drive funding valuations

Complete two full timed mock papers under exam conditions and mark them against the marking scheme