In this article, we will compare modules of Actuarial Science CT1 & CT5 vs CM1. The aim of CM1 is to develop an understanding of the mathematical techniques and applying them to various scenarios.
CT1 + CT5 = CM1A + CM1B
CM1 has taken over two of the core subjects covering the life insurance field where an actuary works. It will cover many of the basics of life insurance, and will also introduce us to how insurance companies survive and make profits.
Some comparisons between CM1 and CT1 & CT5 are as follows:
Syllabus Objective: The syllabus objective has not changed much. CM1 incorporates the aim of both CT1 and CT5 and the interrelated concepts of both the papers have been presented beautifully in CM1.
Exam Structure: The exam structure has changed. A problem-based assessment using Excel has been added to the examination structure. You can read more about the CM1 exam structure here.
Study Hours: The study hours for CM1 are more than that of the individual CT subjects (125-150 hours). The institute’s recommended study hours for CM1 are 250 hours.
Fee Structure: The standard examination fee for CT1 and CT5 was £225 each, and for CM1 is £280. However, the reduced fee for CM1 is £165, while it was £120 for CT papers.
Course Notes: Since two papers have been merged into one, the number of chapters has increased significantly, almost doubling in number. Some additions and removals include:
- Chapter 13 – Arbitrage and forward contracts (CT1).
- Chapter 15 – Stochastic interest rate models (CT1).
- Chapter 11 – Pension funds (CT5).
- Chapter 14 – Mortality, selection, and standardization (CT5).
- Chapter 1 – Principles of actuarial modeling (CT4).
The complete chapters’ list of CM1 can be found in the Study Guide here.
Some interesting topics have been added to CM1 which include data analysis and modeling. We will learn how we can use different models to predict future uncertainties, future sales and how we can use different assumptions to design profitable products for the company.
The entire syllabus structure has been modified to make it more standardized and relevant for the basics of specialization in life insurance.
Having cleared both CT1 and CT5, I feel that the addition of practical part is going to be extremely useful for all students who will take up this subject. It will be really helpful in seeing the background story of the processes taking place in Excel, and also knowing why it is happening in that way. Not only that, but we will also learn to do the same tasks using formulae and functions in Excel which used to be done on paper under the old curriculum.
On a conclusive note, the profession is progressing, and the institute has really taken a big leap which will cause a paradigm shift for the actuarial professionals.
To read more on the latest curriculum changes in 2019 of Actuarial Exams Read
ALL THE BEST!