IFoA CP1 study guide
IFoA CP1 · Work through your exam, one topic at a time.
CP1, Actuarial Practice (Core Principles), is one of the two practice-focused examinations in the IFoA qualification pathway, sitting alongside CP2 (Modelling Practice). It is written for candidates who already have the technical foundations from the Core Technical subjects and now need to apply them the way a working actuary does: framing a problem, choosing assumptions, building a model, interpreting output, and explaining a recommendation to a non-technical audience. The IFoA CP1 study guide has 9 sections and about 2,384 words.
01Professionalism, ethics and the regulatory environment
Domain 1 tests whether you can place technical work inside the UK professional and regulatory framework: the Actuaries' Code, the FRC's Technical Actuarial Standards (TAS), and the PRA/FCA split of prudential and conduct regulation. The Actuaries' Code is principles-based: Integrity, Competence and Care, Impartiality, Communication and Compliance.
313 words, about 2 min02The actuarial control cycle and the business context
Domain 2 tests the Actuarial Control Cycle (ACC) and the commercial setting in which actuaries apply it - strategy, stakeholders, capital and profit. Specify the problem: define the decision, stakeholders, constraints, data and assumptions.
279 words, about 1 min03Risk, uncertainty and risk management
Domain 3 tests risk identification, measurement, management and governance, and the distinction between risk and uncertainty. Risk is measurable variation with assessable probabilities; uncertainty covers outcomes that cannot be reliably quantified (parameter, model and process risk).
251 words, about 1 min04Data, modelling and communication of results
Domain 4 tests data quality, model design and validation, and communication of results to non-actuaries. Check accuracy, completeness, consistency, timeliness, granularity and relevance.
259 words, about 1 min05Life insurance and similar contracts
Domain 5 covers life assurance, annuities and similar contracts: product design, pricing, reserving, asset-liability management and profit recognition. Products: term, whole life, endowment, annuities, with-profit, unit-linked and universal life.
281 words, about 1 min06General insurance
Domain 6 tests general insurance: pricing, reserving, reinsurance and the underwriting cycle. Rating: frequency × severity, exposure rating, experience rating, credibility weighting, no-claims discounts.
233 words, about 1 min07Pensions and other retirement benefits
Domain 7 tests pensions and other retirement benefits: scheme design, funding, regulation and member outcomes. DB promises a benefit linked to salary or service; DC provides a pot with investment risk on the member.
271 words, about 1 min08Health and care insurance and investments
Domain 8 covers health and care insurance: morbidity risk, product design, pricing and the interaction with state provision. Products: private medical insurance, income protection, critical illness, long-term care, dental and cash plans, group risk.
245 words, about 1 min09Investments
Domain 9 tests investment principles: asset classes, risk and return, asset-liability management and portfolio construction. Asset classes: cash, government and corporate bonds, index-linked bonds, equities, property, alternatives and derivatives.
252 words, about 1 min