Build a severity distribution comparison table

Create a table comparing the Exponential, Pareto, Lognormal, Weibull, and Gamma distributions. Include their PDFs, survival functions, means, and how they respond to deductibles and policy limits.

Master the (a,b,0) and (a,b,1) frequency classes

Know which distributions belong to each class and how to use the recursive formula P(n) = (a + b/n) * P(n-1). This is essential for Panjer recursion problems.

Practice loss development triangles on paper

Work through complete chain-ladder calculations by hand, including computing age-to-age factors, selecting development factors, and projecting ultimate losses. Speed on triangles is critical.

Understand limited expected values thoroughly

The limited expected value E[X ^ d] is used in coverage modification, excess loss, and credibility problems. Know both the integral formula and how it relates to the survival function.

Drill Buhlmann credibility parameter estimation

Practice computing the within-variance v = E[Var(X|theta)] and between-variance a = Var(E[X|theta]) from data. These appear in nearly every credibility problem on the exam.

Study the Bornhuetter-Ferguson method alongside chain-ladder

Know when BF is preferred over chain-ladder (immature accident years, unreliable early development). Be able to complete both methods on the same triangle for comparison.

Focus on coverage modifications with real examples

Practice computing expected payments under ordinary deductibles, franchise deductibles, policy limits, coinsurance, and combinations. Use specific numeric distributions to build intuition.

Learn credibility by deriving the Buhlmann formula

Understanding where Z = n / (n + k) comes from (minimizing expected squared error) helps you remember the formula and adapt it to Buhlmann-Straub scenarios.

Practice on-level premium calculations

Ratemaking problems require adjusting premiums to current rate levels. Practice using the parallelogram method and the two-step trending process for both loss and premium.

Time yourself on mixed problem sets

STAM problems vary widely in difficulty. Practice with mixed sets so you learn to triage quickly: do the fast problems first, then return to the time-intensive ones.

STAM Study Tips