CM1: Actuarial Mathematics 1 (Completely in English)
For Institute and Faculty of Actuaries and Institute of Actuaries of India exams
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Unlike traditional coaching institutes, TAG courses are concept & intuition first – we'll get into the detail of math, intuition & derivations and solve a lot of exam questions.
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About CM1: Actuarial Mathematics 1
Course Overview
Subject CM1 is specifically designed to teach the fundamentals of financial mathematics and life insurance mathematics to actuarial students, focusing heavily on applying these core theories practically using MS Excel.
Course Prerequisites
To succeed in CM1, you will need a solid foundation in the following areas:
- Statistics & Probability: A good understanding of descriptive statistics and random variables. (Included in the course as a dedicated prerequisite module!)
- A-Level / Class 12 Mathematics: You must be comfortable with Calculus, Sequences & Series, Algebra, and Numerical Methods (including the basics of logarithms and anti-logarithms).
Exam Structure (2026)
- Paper A (70% weightage): For the IFoA, this is an MS Word-based exam. For the IAI, this is a mixed format consisting of 70% descriptive questions and 30% MCQs.
- Paper B (30% weightage): For both the IFoA and IAI, this is a practical exam conducted purely on MS Excel.
CM1 Syllabus & Study Guide
To cover the material thoroughly, expect an overall study time of approximately 250 to 300 hours depending on your mathematical background.
| Unit / Topic | Description | Total Study Hours |
|---|---|---|
| Cashflow Discounting | How to discount cashflows with different frequencies, payment structures, and using a variety of interest measures. Covers the time value of money, real/money interest, and increasing/level annuities. | 35 Hours |
| Project Appraisal | How to evaluate financial projects using different performance measures like Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, etc. | 25 Hours |
| Valuation of Loans, Equity, Bonds & Property | Valuing loans, calculating installments (principal + interest). Advanced techniques for valuing bonds, equity, and property. | 30 Hours |
| Term Structure of Interest Rates | Modeling how interest rates vary with time, and quantitatively evaluating and mitigating interest rate risk. | 12 Hours |
| Introduction to Life Insurance Math | Life probabilities and life insurance contracts (assurances, annuities, variable benefits, and conventional with-profits policies). Calculating their value and risk measure. | 28 Hours |
| Pricing & Reserving of Life Insurance Contracts | Techniques to calculate gross premiums and gross premium reserves for life insurance. | 35 Hours |
| Pricing & Reserving for Contracts with 2 Lives | Calculating premiums and reserves for joint life/last survivor functions, and contingent/reversionary benefits. | 25 Hours |
| Mortality Profit | Evaluating the profit or loss arising from unexpected changes in mortality rates. | 15 Hours |
| Modelling Risks Other Than Mortality | Analyzing competing risks. Modeling contracts that involve mortality alongside morbidity, retirement, and surrender. | 20 Hours |
| Evaluation of Profit & Cashflow Based Pricing | Pricing and reserving aspects of unit-linked contracts, accumulating with-profits, profit testing, and cashflow-based pricing. | 30 Hours |