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Ruin Theory in CM2 vs CT6

B

bot7337

Member
There are a few items in the syllabus objectives of CT6 that is not in CM2

3. Define a compound Poisson process and derive the moments and moment generating function for such a process.
4. Define the adjustment coefficient for a compound Poisson process and for discrete time processes which are not compound Poisson, calculate it in simple cases and derive an approximation.
6. State Lundberg's inequality and explain the significance of the adjustment coefficient.

Are these parts in the syllabus of CM2 ?
The specimen paper for CM2 does include adjustment coefficient R , but the ruin theory question in CM2A April 2019 seemed to be the most basic case and did not include any of those parts
 
Hello!
You're right to say that these items are not on the CM2 syllabus. However, the adjustment coefficient and Lundberg's inequality are still very much in the Core Reading. Therefore, I would err on the safe side and revise it for the CM2 exam.
We have already flagged these anomalies with the IFoA, but would very much appreciate your support in doing so similarly if you feel you are able to find a moment to do so (Education.Services@actuaries.org.uk)
Anna
 
Hi, sorry to start up an older thread. I was just interested if there was a reply from the IFOA in regard to these issues? i.e. are they included or not in the syllabus, as it would appear in both of the CM2 papers none of these three points were tested.

Cheers
 
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