<div class="exam-nav" data-color="#db2777" data-prev="DISC RM|Risk Management" data-current="5|Ratemaking & Reserving" data-next="Exam 6|Regulation & Financial Reporting|Exam 6 (CAS).md" data-tracks="ACAS|Associate of the Casualty Actuarial Society (ACAS).md" </div> <div class="download-dropdown" data-color="#db2777" data-label="Download Resources" data-files="Exam 5 - April 2026 Content Outline|https://www.casact.org/sites/default/files/2025-05/Exam_5_ContentOutline_2025_F.pdf,Exam 5 - October 2026 Content Outline|https://www.casact.org/sites/default/files/2026-03/Exam_5_CO_2026_Fall.pdf"> </div> [[Actuarial Notes Wiki|Wiki]] / **Exam 5 (CAS)** > [!answer]- Exam Schedule {2026} > > <div class="highlight-upcoming" data-date-col="0"></div> > > Dates | Exams > -|- > Apr 14 - Apr 21 | Exam 5 > Oct 19 - Oct 27 | Exam 5 > > - [Register for Exam 5 (casact.org)](https://www.casact.org/cas-has-new-user-portal) ## Exam 5 (CAS) <div class="download-dropdown" data-color="#db2777" data-label="Download Resources" data-files="Exam 5 - April 2026 Content Outline|https://www.casact.org/sites/default/files/2025-05/Exam_5_ContentOutline_2025_F.pdf,Exam 5 - October 2026 Content Outline|https://www.casact.org/sites/default/files/2026-03/Exam_5_CO_2026_Fall.pdf"> </div> **Exam 5** - Basic Techniques for Ratemaking and Estimating Claim Liabilities is a 4 hour exam. ### Learning Objectives > [!example]+ Ratemaking {45-55%} > Understand basic ratemaking so you can analyze data, select appropriate techniques, and develop solutions to problems. > 1. Define and describe [[Exposure Base|Exposure Bases]] as used in the [[Ratemaking Process]] > 2. Evaluate and select an exposure base in a given scenario for use in the ratemaking process (e.g., [[Line of Business]], use cases) > 3. Aggregate and/or organize [[Ratemaking Data]] in the following ways: [[Calendar Year]], [[Policy Year]], [[Accident Year]], [[Report Year]], [[Close Year]], [[In-force]], [[Net of Reinsurance]] > 4. Evaluate ratemaking data and analyses for errors and reasonableness > 5. Separate data into groups that balance [[Homogeneity]] and [[Credibility]] and summarize the considerations for determining such groups > 6. Calculate [[Loss]] and [[Loss Adjustment Expenses]] to be used for ratemaking (e.g., common ratios, [[Adjustments to Losses]], [[Claims-made Coverage|Claims Made]] vs [[Occurrence Coverage]]) > 7. Calculate various adjustments to the premium used for ratemaking (e.g., [[On-leveling]], [[Premium Audit]]) > 8. Calculate and apply [[Trends]] (e.g., [[Exposure Trend|Exposure]], [[Premium Trend|Premium]], [[Loss Trend|Losses]]) using different approaches (e.g., exponential, and linear analyses) > 9. Calculate the [[underwriting provisions]] underlying the overall [[rate level indication]] (e.g., [[Fiex Expenses|Fixed]] and [[Variable Expenses]], [[Profit]] and [[Contingency]], [[Reinsurance Costs]]) > 10. Demonstrate proper handling of **extraordinary losses** for ratemaking purposes (e.g., [[Large Losses]], [[Catastrophes]]) > 11. Construct an overall rate level indication using the [[Pure Premium Method (Rate Indication)|Pure Premium]] and [[Loss Ratio Method (Rate Indication)|Loss Ratio Methods]] > 12. Apply [[Credibility]] to ratemaking analyses using different methods and justify choice of [[Complement of Credibility|Complement]] > 13. Select and justify a final rate change to implement beyond the calculated overall rate level indication (e.g., Operational/Marketing/Regulatory [[Constraints on Implementing Rate Changes|Constraints]], [[Lifetime Value]]) > 14. Perform calculations related to alternative ratemaking procedures (e.g., [[Classification]], [[Territory]], [[Deductibles]], [[Increased Limits]], [[Coinsurance]], [[Commercial Lines Rating]] mechanisms, etc.) > 15. Analyze results of [[Predictive Models]] (e.g., [[GLM]]) > 16. Apply the [[Four Principles of Ratemaking]] to a scenario > 17. Understand the considerations for implementing rates to achieve an organization’s goals (e.g., [[Non-pricing Solutions]], [[Minimum Premium]], [[Rating Algorithms]]) > [!example]- Estimating Claim Liabilities (Reserving) {45-55%} > 1. Organize [[Reserving Data]] in the following ways: calendar year, accident year, policy year, underwriting year, report year, etc. > 2. Evaluate reserving data and analyses for errors and reasonableness > 3. Describe the role of homogeneity and credibility of data in the process of estimating unpaid claims > 4. Describe the fundamentals of different types of insurance (e.g., [[long tail]] versus [[short tail]] lines, low frequency versus high frequency lines, occurrence versus claims made) > 5. Articulate the importance of accurate [[estimates of unpaid claims]]. > 6. Build and analyze [[Development Triangles]] (e.g., loss, count, allocated loss adjustment expenses (ALAE)) > 7. Apply a [[Tail Factor]] > 8. Use development triangles as diagnostic tools to identify changes and trends (e.g., [[Loss and Claim Count Triangle|Loss and Claim Count]], [[Ratio of Losses to Premium Triangle|Ratio of Losses to Premium]], [[Severity Triangle|Severity]], [[Ratios of Loss and Claim Counts Triangle|Ratios of Loss and Claim Counts]]) Casualty Actuarial Society Exam 5 Content Outline 5 TASKS (Continued) > 9. Calculate and evaluate unpaid loss estimation techniques (i.e., development/[[chain ladder]], [[Case Outstanding Development]], [[Expected Losses]], [[Bornhuetter-Ferguson]], Cape Cod, frequency-severity, [[Berquist-Sherman]], [[Benktander]]) > 10. Assess the influence of [[operating changes]] on the estimation of unpaid losses (e.g., [[claims coding]] and/or [[claim-related expenses]], [[claims processing]], [[underwriting and policy provisions]], [[marketing]], [[reinsurance]], [[treatment of recoveries]] such as deductibles and salvage and subrogation) > 11. Adjust data and/or estimation techniques for changes in the internal and external environment (e.g., claims processes that result in shift in the adequacy of case outstanding or shift in settlement rates, change in mix of business, change in rate level, inflationary or legal environment) > 12. Consider the impact of and adjust for the presence of large losses in a reserving analysis > 13. Calculate and evaluate the [[Estimation Techniques for Recoveries]] (e.g., salvage and subrogation, reinsurance) > 14. Calculate and evaluate the [[Estimation Techniques for Allocated Loss Adjustment Expenses]] > 15. Calculate and evaluate the [[Estimation Techniques for Unallocated Loss Adjustment Expenses]] > 16. Evaluate the results of a reserve analysis for adequacy and reasonableness using loss ratios, severities, pure premiums, frequencies, indicated unpaid losses, etc. > 17. Monitor results for adequacy and reasonability including interim valuations (e.g., [[actual versus expected]], [[roll forward analysis]]) > 18. [[Communicate unpaid claim estimates results|Communicate results]] and drivers of change to various stakeholders (internal management, investors, regulators) > 19. Define and apply reinsurance concepts to calculate [[Net Losses|Net]], [[Ceded Losses|Ceded]], and [[Gross Losses|gross losses]] > 20. Utilize [[External Information]] in a reserve analysis ## Sources