As part of the CAS Admissions Transformation Plan (ATP), updated versions of Exams 7, 8 and 9 will be introduced this year. The first refreshed versions of Exams 7 and 9 will be administered in Spring 2024, while the first updated version of Exam 8 will be given during the Fall 2024 sitting.

Whether you’re taking these exams for the first time or once again, here’s what you need to know. 

New Exam 7 (Advanced Estimation of Claim Liabilities) 

If you’re taking Exam 7, say good-bye to the topics of valuation and enterprise risk management (ERM). Insurance company valuation has been dropped from the CAS curriculum entirely, while ERM has been moved to the new version of Exam 9. This exam is now 100% focused on advanced reserving methods. All of the reserving source material from Spring 2023 continues to be on the content outline, including the classic 1994 Mack paper and three CAS Monographs on stochastic methods. As someone who’s taking Exam 7 for the second time, I appreciate the reduced material. However, that also means there may be room to ask additional and deeper questions on the remaining topics. 

New Exam 8 (Advanced Ratemaking) 

Exam 8 is the only one whose title hasn’t changed. Like Exam 7, some topics have been removed from the content outline, but no additional material was added. The former Catastrophe and Reinsurance Ratemaking Section has been moved to Exam 9. Classification ratemaking is now the largest topic, comprising at least 60% of the exam. This is a significant increase in weight, as compared to the 2023 exam. Excess, deductible and individual risk pricing makes up the remaining portion. Note that unlike for Exams 7 and 9, source material is still being finalized. According to the published content outline, candidates will still encounter readings like the GLM Pricing Monograph and Fisher’s “Individual Risk Rating” Study Note.

New Exam 9 (Risk Management for Actuaries) 

The most significant changes were made to Exam 9, which has also been completely renamed. A new textbook, Pricing Insurance Risk: Theory and Practice by Mildenhall and Major, comprises a large part of the content outline. Two domain areas, “Risk and Return” and “Financial Risk Management,” will continue to be tested. In addition, you’ll study “Catastrophe and Reinsurance Ratemaking” (formerly on Exam 8) and ERM (formerly on Exam 7). Exactly four readings (Coval-Jurek-Stafford, both Cummins and Panning) are the only common source material that remains from the 2023 version of this exam. 

Are there any other changes I should know about? 

In addition to revised exam content, candidates should also expect changes to the types of questions asked. No longer will there be only constructed-response questions, but we could also see multiple-choice (long time no see!), multiple-selection (more than one correct answer), matching and other possible formats, too. The CAS released sample questions with the new item types, available on the CAS/Pearson VUE webpage, to help candidates familiarize themselves with the format ahead of exam day. There is also a video tutorial on the new item types and functionality for candidates to use as a resource. Note, the sample Exam 8 item types will be added to the sample exam later this year. Another resource all candidates should review is the Know Before You Go information, which outlines the new exam formatting, question tips and more. 

No matter which exam you’re taking, happy studying and best of luck in your pursuit of the FCAS designation! 

A note from Arthur Zaremba, FCAS, CAS Syllabus and Examination Working Group Chair 

The CAS leadership and Syllabus and Examination Working Group volunteers will continue to ensure that the content presented on both the ACAS and FCAS exams accurately represents a holistic viewpoint of the profession and evaluates the skills needed to ensure CAS candidates and members are prepared to meet future skill demands. 

The group of CAS volunteers that make up the Syllabus and Examination Working Group are instrumental in helping with the updates discussed in this article. As has been done for many years, writing volunteers are tasked with writing questions on new syllabus materials. One of the goals with these new item types is the ability to grade exams more efficiently than if they were 100% free response. This also brings us closer to being able to offer Fellowship exams more frequently than once a year, something we are hoping to accomplish in the next few years.