[[Actuarial Notes Wiki|Wiki]] / **Exam 7 (CAS)** <div class="exam-nav" data-color="#65a30d" data-current="7|Advanced Estimation of Claims Liabilities" data-tracks="FCAS|Fellow of the Casualty Actuarial Society (FCAS).md" </div> ## Exam 7 (CAS) The **Advanced Estimation of Claims Liabilities (Exam 7)** is a 4 hour exam covering unpaid claim estimation, stochastic reserving methods, and reinsurance reserving. <div class="callout-cols-2"> > [!answer]- 📅 Exam Schedule {2026} > > <div class="highlight-upcoming" data-date-col="0"></div> > > Dates | Exam > -|- > Apr 14 - Apr 21 | 7 > Oct 19 - Oct 27 | 7 > > - [Register](https://www.casact.org/exams-admissions/exam-registration) ($850 USD registration fee) > [!answer]- 📄 Download Resources {1 PDF} > - [Exam 7 Content Outline](https://www.casact.org/exam/exam-7-advanced-estimation-claims-liabilities) </div> >[!answer]- 📕 Source Material {15 Sources} > > | Source | Tasks | > | --- | --- | > | [[Loss Development Using Credibility (Brosius - 1993)]] | A1-A3, A6, A11 | > | [[LDF Curve Fitting and Stochastic Reserving (Clark - 2003)]] | A2-A3, A6-A8, A11 | > | [[Reserving for Reinsurance (Friedland - 2022)]] | A15-A17 | > | [[Credible Loss Ratio Claims Reserves (Hurlimann - 2009)]] | A1-A3, A6, A11 | > | [[Measuring the Variability of Chain Ladder Reserve Estimates (Mack - 1994)]] | A2, A6-A8 | > | [[Credible Claims Reserve: The Benktander Method (Mack - 2000)]] | A1-A3, A9, A11-A12 | > | [[A Framework for Assessing Risk Margins (Marshall et al. - 2008)]] | A14 | > | [[Stochastic Loss Reserving Using Bayesian MCMC Models (Meyers)]] | A9-A10 | > | [[Claims Development by Layer (Sahasrabuddhe - 2010)]] | A4 | > | [[Using the ODP Bootstrap Model (Shapland)]] | A1, A9-A10, A13 | > | [[A Model for Reserving Workers Compensation High Deductibles (Siewert - 1996)]] | A4 | > | [[Stochastic Loss Reserving Using Generalized Linear Models (Taylor)]] | A9-A10 | > | [[Estimating the Premium Asset on Retrospectively Rated Policies (Teng and Perkins - 1996)]] | A5 | > | [[Testing the Assumptions of Age-to-Age Factors (Venter - 1998)]] | A2, A6, A12 | > | [[Obtaining Predictive Distributions for Reserves Which Incorporate Expert Opinion (Verrall - 2007)]] | A9, A13 | ### Learning Objectives > [!example]- Data Preparation, Organization, & Analysis > ### Data Preparation, Organization, & Analysis > Candidates are expected to apply basic Principles and [[Standards of Practice]] for [[Unpaid Claim Estimation]], including evaluating liabilities arising in complex [[Risk Transfer]] agreements common in excess insurance and [[Reinsurance]] contracts. > 1. Perform [[Data Diagnostic Analysis|data diagnostic analyses]] and adjust for data issues > [!example]- Unpaid Claim Point Estimates > ### Unpaid Claim Point Estimates > 2. Calculate [[Unpaid Claims]] estimates > 3. Test unpaid claims estimates for reasonableness > 4. Estimate unpaid claims for various layers of coverage > 5. Forecast [[Premium Reserves]] (e.g., reserves for [[Retrospective Premiums]]) > [!example]- Unpaid Claim Stochastic Distributions > ### Unpaid Claim Stochastic Distributions > 6. Estimate parameters of [[Unpaid Claims Distributions]] > 7. Calculate the [[Moments]] and [[Percentiles]] of unpaid claim distributions > 8. Simulate parameter percentiles and unpaid claims percentiles > 9. Calculate the mean and [[Prediction Error]] of a reserve > 10. Derive [[Predictive Distributions]] using stochastic methods > [!example]- Unpaid Claim Output & Diagnostic Analysis > ### Unpaid Claim Output & Diagnostic Analysis > 11. Test output of unpaid claim distributions for reasonableness > 12. Test assumptions underlying [[Reserving Models]] > 13. Develop a range of indications > 14. Calculate [[Risk Margins]] > [!example]- Reinsurance > ### Reinsurance > 15. Adjust primary methods and data to be used for [[Reinsurance Reserving]] > 16. Calculate [[Ceded Loss Reserves]] > 17. Describe the function and types of [[Reinsurance]]