IFoA CM2 case studies
IFoA CM2 · Put your knowledge to work in context.
CM2, Actuarial Mathematics: Models, is one of the technical examinations in the Institute and Faculty of Actuaries' qualification pathway towards Fellowship. It sits after the earlier mathematical foundations subjects and is aimed at candidates who already handle calculus, probability and basic statistical inference and are ready to build and criticise full stochastic models. The IFoA CM2 case studies are 5 cases and about 2,892 words.
1Group income protection claim counts and overdispersion
A pricing team is reviewing group income protection experience for 40 small employers. For each employer you have the number of claims in a three-year period and the total policy-years of exposure.
639 words, about 3 min2Motor claim frequency GLM with a sparse telematics level
A motor insurer fits a Poisson GLM to one year of claim counts for 18,000 comprehensive policies. The linear predictor uses log(policy-years) as an offset, plus vehicle group (A–D), driver age band (17–24, 25–34, 35–54, 55+) and a new telematics factor with six levels.
575 words, about 3 min3Kaplan-Meier mortality estimate with informative withdrawals
A pension scheme studies mortality among 1,000 members aged exactly 65 at entry. Members are followed for up to three years.
565 words, about 3 min4Long-term care transition matrix and three-year projection
A long-term care insurer uses a three-state annual Markov chain with states Healthy (H), Care (C) and Dead (D). The estimated one-year transition matrix is: from H, 0.85 to H, 0.10 to C and 0.05 to D; from C, 0.20 to H, 0.55 to C and 0.25 to D; from D, 1 to D.
562 words, about 3 min5Graduation and mortality projection for a pension scheme
A pension scheme has 10,000 pensioner lives. Crude annual mortality rates have been calculated by single years of age from 60 to 91.
551 words, about 3 min