CAS Parts 5 and 6

[Examinator]

In your opinions, which of these exams is more difficult? I'm taking 6 for my frist upper level exam and am curious about what I'll be gearing up for in the spring. Thanks for your input.

[Smooth Verona]

I believe 6 is harder than 5, unless you've done a lot of reserving at work and little pricing. However, I like 6 much better. On 5, the Intro to Insurance material (old 3B) is not fun at all.

[Bullfrog1220]

It's completely different for different people. I personally do pricing in my day-to-day work, and I still thought that CAS 6 (the reserving exam) was easier. I can't explain why. If we took a poll, I'd guess that it's close to 50-50.

Even then, they're both difficult and you have to pass them both for ACAS. So just dive in.

[Examinator]

Thanks. I work in pricing and had only a superficial knowledge of reserving before beginning to study for 6. The material has been pretty rough for me, so I'm trying to get a little hope into my head for the spring. I know none of them are easy, but if I can at least look forward to something to some degree, then that's a start.

[VernSchil]

Originally Posted by Examinator

Thanks. I work in pricing and had only a superficial knowledge of reserving before beginning to study for 6. The material has been pretty rough for me, so I'm trying to get a little hope into my head for the spring. I know none of them are easy, but if I can at least look forward to something to some degree, then that's a start.

I'm in the same boat although I just started even on the pricing. I've pretty much accepted failure on 6 this Fall as the influx of totally new material completely overwhelmed me and will use the time just to get a taste of what's out there. I'll go gun ho on 5 in the Spring.

[Examinator]

Definitely the same boat. I certainly don't think that 5 is in the bag for me. Heck, it could be worse based upon what other people have said. I do think I'll fare better than 6, on which I know I'll tank, as I have at least a general familiarity (in several cases quite solid) with most of the topics discussed. Even if I can do well on 5 without passing it would be good psychologically.

[Utanapishtim]

I think six will be more difficult for me on account of not having worked in reserving, but only pricing, so far. Five was nice in that a lot of -- well, some of the material was actually relevant to my work. I haven't decided yet which is worse, though, the CPCU stuff from five or the accounting stuff in six. Ask me in November (;

[Morrison]

Just wait until you get to the accounting and legal stuff in Part 7. It makes the CPCU material in Part 5 seem delightful in comparison.

[Examinator]

I've heard several people say 7 is the worst, and I make no claim against that. Those on my plate right now are 5 and 6, so I'm just looking for a ray of light from one to the other.

[MNBridge]

6 is easier (IMO) -- But it is essential you have someone to explain how all the ideas mesh (All 10 is the best).

The reserving stuff on 6 is all basically the same concept with a different twist. Trying to figure this out on your own with just papers will be a nightmare.

The people who thinks exams are "pure memorization" and try to just memorize the formulas from each paper without seeing how they tie will will have a very very difficult time with 6, and will probably complain about there being to much material.

You need to understand the concepts.

For example:
Bornhuetter Ferguson = Chain Ladder except the development is based on 'expected losses' not losses to date
Stanard = B-F except we use a certain way to find out 'pick' for expected.

Sorry I can't remember everything on the exam so the above are examples only, I think there is more than one Stanard.