CAS Part 6

From Actuarial Outpost Wiki

Jump to: navigation, search

Contents

General

Currently, CAS Exam 6 is a four-hour, associate-level exam that covers four basic principles:

  • Actuarial Reserves
  • Insurance Accounting Principles
  • Reinsurance
  • Enterprise Risk Management

In 2011, according to this chart the following changes will take place:

  • Actuarial Reserves portion will be moved to Exam 5
  • Insurance Accounting Principles will be moved to Exam 7
  • Advanced Reserving will be added to Exam 6
  • Exam 6 will become a three-hour exam
  • Exam 6 will become a fellowship-level exam

Actuarial Reserves

The main requirement of this section is for the student to be able to identify and use the various techniques and methods available for an actuary to properly estimate the amount of reserves necessary to cover all paid losses and IBNR. The student should also be able to judgementally select which method to use in certain situations, based on the volume, homogeneity, and quality of historical claims data.

These are the main reserving techniques presented for the student to learn:

  • Development
  • Expected Claims
  • Bornhuetter-Ferguson
  • Cape Cod (or SB)
  • Frequency-Severity
  • Case Outstanding Development
  • Bernquist-Sherman

Insurance Accounting Principles

Reinsurance

Enterprise Risk Management

External Links