Start with loss distribution fitting

Practice fitting Pareto, Lognormal, and Weibull distributions to data using MLE. Know how to set up the likelihood when data is grouped, censored, or truncated.

Master coverage modifications algebraically

Know the formulas for E[Y^L] (payment per loss) and E[Y^P] (payment per payment) with ordinary deductibles. Practice with inflation adjustments that shift the underlying distribution.

Build complete ratemaking indications from scratch

Practice computing an indicated rate change by combining development, trending, credibility, on-leveling, and expense loading. Work through the entire process on sample data.

Study all three reserving methods on the same triangle

Apply chain-ladder, Bornhuetter-Ferguson, and Cape Cod to the same loss triangle. Compare the results and understand when each method is most appropriate.

Understand coherent risk measures deeply

Know the four properties of a coherent risk measure (translation invariance, subadditivity, positive homogeneity, monotonicity). Understand why VaR fails subadditivity but TVaR satisfies it.

Practice credibility problems with real data

Set up Buhlmann-Straub problems with multiple insureds, varying exposure weights, and compute the credibility-weighted premium for each. Practice the full parameter estimation pipeline.

Study GLMs in an insurance pricing context

Know how to interpret Poisson regression coefficients as multiplicative factors on claim frequency. Practice computing predicted premiums from GLM output with multiple rating variables.

Focus on the interplay between ratemaking and reserving

Understand how development patterns affect both loss projections for ratemaking and IBNR estimates for reserving. Problems sometimes require you to use the same triangle for both purposes.

Learn model validation techniques

Study cross-validation, lift charts, Gini coefficients, and residual plots for validating predictive models. Know the difference between in-sample and out-of-sample performance metrics.

Simulate the full 4-hour exam experience

MAS-II is 4 hours with 40 questions. Take at least three full-length practice tests under timed conditions. Pay attention to which topics consume the most time.

MAS-II Study Tips