CM1 Actuarial Mathematics for Modelling - Syllabus for 2025 Examinations

Sep 27, 2026

CM1 Actuarial Mathematics for Modelling outlines the study requirements and assessment approach for the 2025 examinations. The syllabus builds mathematical foundations for deterministic actuarial modelling, including time value of money and the theory of interest rates. It covers modelling cashflows that may be certain or contingent on mortality, morbidity, or survival. It also specifies subject links across CS1, CM2, CB1, CP1–CP3 and details topic weightings and learning objectives.

LanguageEnglish

CategoryExam

FormatPDF

Pages7

Reading Time18 min

AccessFree to download

Aim

Links across the Qualifications

Topics and Topic Weightings

Objectives

Theory of interest rates

Equation of value and its applications

Institute of Actuaries of India Subject CM1 – Actuarial Mathematics for Modelling Core Principles For 2025 Examinations CM1 Actuarial Mathematics for Modelling Syllabus for 2025 Examinations This syllabus includes information to support the study of this subject. It will guide you through what you need to learn, application of learning as well as the skills that you need to develop. Information regarding the assessment of this subject is also included. This syllabus includes: • Aim of the subject • How this subject links across the Qualifications • Subject topics and topic weightings • Subject objectives • Assessment information Aim Actuarial Mathematics for Modelling (CM1) develops a grounding in the mathematical principles required for actuarial modelling, with a focus on understanding deterministic models and their application to solve financial problems. Alongside this, the related and required understanding of the theory of interest ratesand the skills to model cashflows, which may be known or contingent on mortality, morbidity or survival, are also developed. Links across the Qualifications Associateship Qualification Concepts in Actuarial Mathematics for Modelling (CM1) are introduced in Actuarial Statistics (CS1), in particular, a familiarity with probabilities, random variables, expectation and variance, which is required understanding for CM1 . Topics in CM1 are further developed in: • Financial Engineering and Loss Reserving (CM2) o Extension and application of many concepts and techniques from CM1 to stochastic modelling • Business Finance (CB1) o Application of the knowledge of interest rates to the interpretation of corporate accountsand understanding how corporate operations are financed • Actuarial Practice (CP1) o Applies CM1 techniques to real world problems • Modelling Practice (CP2) o Application and communication of CM1 techniques in a business context • Communications Practice (CP3) o May draw upon concepts and techniques from CM1 in order to answer the CP3 examination questions Fellowship Qualification Concepts, principles and techniques from CM1 are further developed in the following Specialist Principles subjects, through solving problems and giving appropriate advice, guidance and recommendations: • SP1-Health and Care Principles • SP2-Life Insurance Principles • SP4-Pensions and other Benefits Principles Topics and Topic Weightings 1. Theory of interest rates [25%] 2. Equation of value and its applications [20%] 3. Decrement and multiple life models [20%] 4. Pricing and reserving [35%] Objectives 1 Theory of interest rates [25%] Understand the principles of time preference theory of interest and the time value of money, includingthe term structure of interest rates and standard actuarial compound interest rate functions. Apply these principles to real world examples of interest rates, discounting and evaluation of present values of cashflows. 1.1 Show how interest rates may be expressed in different time periods 1.1.1 Relationship between the rates of interest and discount over one effective period, considered arithmetically and by general reasoning 1.1.2 Determine, when given a rate of interest under a specified payment frequency, the equivalentrate under an alternative payment frequency, including: • Annual effective rate of interest or discount • Rate of interest of discount payable pthly (p>1) • Force of interest 1.1.3 Calculate the equivalent annual rate of interest implied by the accumulation of a sum of moneyover a specified period where the force of interest is a function of time 1.2 Account for the time value of money using the concepts of compound interest and discounting 1.2.1 Accumulate a single investment at a constant rate of interest under the operation of simple and compound interest 1.2.2 Calculate the present value of a future payment by discounting a single investment 1.3 Exten

FAQs

What is the aim of CM1 Actuarial Mathematics for Modelling?

CM1 develops mathematical principles for actuarial modelling with emphasis on deterministic models and applying them to financial problems. It also builds understanding of the theory of interest rates and skills to model cashflows that may be certain or contingent on mortality, morbidity, or survival.

How does CM1 connect to other qualifications?

CM1 concepts are introduced in Actuarial Statistics (CS1) and are further developed in CM2, CB1, CP1, CP2, and may draw on CM1 in CP3. Fellowship Specialist Principles subjects SP1, SP2, and SP4 also build on CM1 techniques through problem solving and advice.

What are the main topic areas and their weightings in the 2025 syllabus?

The syllabus allocates 25% to Theory of interest rates, 20% to Equation of value and its applications, 20% to Decrement and multiple life models, and 35% to Pricing and reserving.

Sep 27, 2026

Uploaded by Anna Hans