CAS Exam 7: Estimation of Policy Liabilities and ERM

Advanced Reserving

Exam 7 extends the reserving concepts from Exam 5 to more complex scenarios. Topics include stochastic reserving methods, Mack's model for measuring reserve variability, and bootstrap techniques for generating reserve distributions. You must handle complications like changing settlement patterns, large losses, and aggregate cover pricing. The exam tests both technical proficiency and the judgment needed to select appropriate methods for real-world situations.

ERM and Valuation

The enterprise risk management section covers risk identification, measurement, and mitigation at the organizational level. Topics include economic capital models, risk measures such as VaR and TVaR, and capital allocation methods. Insurance company valuation concepts round out the syllabus. This is a fellowship-level exam with written-answer questions requiring clear communication of technical concepts. Success demands not just calculation skills but the ability to explain your reasoning and justify your assumptions in writing.