• Legal – legislation, vital service, technical, fair and reliable
  • Government – objective, operations, evaluate effectiveness
  • Reporting – understanding financial statements & calculations
  • Solvency – evaluate the financial soundness
  • Actuary – Integrity, Competence, Skill & Care 

About the Exam

I want to caution anyone from thinking the papers are “ranked”.  There is certain material that will be on the exam, but for the most part the point value of each question depends on how much contents is being request (0.25 points / idea) vs. the paper’s importance.  The most important point is to familiarize yourself with all papers key message and key components.

Memorizing (50%)

The bulk of this exam relates to reading and understanding all the written material.  Writing questions related to this exam is challenging.   I strongly encourage tracking key points, key lists, key elements, key components etc. from each paper and putting them to memory.  These points can easily represent 50% of the exam.  

In addition, there are several “trivia” questions – extracting a small detail from the paper – if you know the answer you’re lucky.

There are several questions that require a minor amount of application of your memory: compare DCAT to ORSA (compare key elements).

Accounting / Calculations

  1. P&C Annual Statement – reviewing net income, assets liabilities (pages 20.10, 20.20, 20.30) – Everything related reporting comes from here. Many other papers rely on a solid understanding of the pages.
  2. Once you’re familiar with the general calculations, categories and definitions from (20.10 to 20.30), you can progress onto the key calculations: unpaid claims & premiums liabilities.
  3. After this it’ll help to learn why we have Accumulated Other Comprehensive Income in the Equity (but not assets)
  4. Once completed learn all the important MSA ratios (since we’re now familiar with all the pieces).
  5. Now that you’re an accountant, you can proceed to reviewing all the re-insurance papers including (Blanchard & Klann [CAS]).

Analysis (Financial Solvency):

  1. MCT
  2. DCAT
  3. Stress testing
  4. Internal target capital ratios
  5. MSA ratios (go back to review acceptable ranges)
  6. Key financial measures used by rating agencies
  7. Rules-based and principles-based solvency regulation (ORSA, MCT, and Solvency II)
  8. A.M. Best rating system

Other Key Subjects

  1. Legal cases (5%) – Learn More
  2. Subsequent events (3%)
  3. Evaluate Government Insurance (2%)
  4. Top ranked papers