IFoA CS2 case studies
IFoA CS2 · Put your knowledge to work in context.
CS2 - Actuarial Mathematics is a Core Principles subject in the Institute and Faculty of Actuaries (IFoA) Curriculum 2025, as listed on the IFoA site under Qualify → Curriculum → Core Principles. It is aimed at candidates progressing through the IFoA qualification who need the mathematical and modelling foundations that underpin later specialist practice. The IFoA CS2 case studies are 5 cases and about 2,729 words.
1Competing Risks in Critical-Illness Incidence
A life insurer is reviewing a portfolio of 600 critical-illness (CI) policies sold to policyholders aged 45–60. Over a five-year observation window the insurer recorded 72 CI diagnoses, 48 surrenders, 15 deaths before diagnosis, and 465 policies still in force at the end of the window.
567 words, about 3 min2Intensities Versus Transition Probabilities in a Disability Model
A disability income insurer models a portfolio of 10,000 active lives using a three-state Markov model: Active (A), Disabled (D), Dead (X). The annual transition intensities are estimated as: A→D 0.018, D→A 0.22, D→X 0.035, A→X 0.004.
520 words, about 3 min3Overdispersion and Missing Telematics in a Claim-Frequency GLM
An insurer is building a Poisson GLM for motor claim frequency using 48,000 policy-years. The model uses a log link, an offset for years of exposure, and covariates for vehicle age, driver age, region and no-claims discount.
650 words, about 3 min4Credibility and a Large Claim in Group Life Rating
An insurer is setting group life premium rates for 15 employer schemes. For each scheme it has three years of death claim amounts and employee-year exposure.
479 words, about 2 min5Chain Ladder, Bornhuetter–Ferguson and a Large Claim
An insurer is reserving for a general liability portfolio. Cumulative paid claims (£m) by accident year and development year are: AY2021: 12.0, 18.0, 22.0 at development years 1, 2 and 3; AY2022: 13.5, 19.5 at development years 1 and 2; AY2023: 15.0 at development year 1.
513 words, about 3 min