Similarity between ST1 and ST2

Can anyone please let me know to what extend ST1 and ST2 are similar? I've heard that the only difference between these two exams is of the different products of Health care and life insurance.

 

The different products are only one difference between ST1 and ST2 not the only one. The different products mean different risks and factors to consider under various scenarious in addition to other differences.

The sections on reinsurance and modelling are virtually identical in both subjects but you still need to show you understand these in the context of ST1 to pass the ST1 exam. Knowledge of ST2 will help but it's a different viewpoint on the same material.

There's no mention of the profit distribution methods in ST1.

Another key point is that ST1 is still a relatively new subject and is less welll supported in terms of study material. For example no Sound Revision exists and Revision Notes were only available before the April 2008 diet.

Golden rule is ST1 is ST1 and ST2 is ST2.

 

Well, they're both STs....

Seriously though, it's not as simple as replacing qx with qx' and job's done...

.. but then they're not as different as doing, say, ST2 and ST6

Don't go in thinking that it will be easier than doing any other of ST combinations... but you may find that there is some cross-over (some on your lists may just need tweaking)

One considertaion may be where you work... some Life companies also offer healthcare style products (CI say) and you may be able to scrape a few extra marks in an exam from *pretending* it's a life product and translating it to the real world.

You also won't be against as many *specialists* as you would if you were to take a penion/GI paper and so the playing field may be a tad more level!

CC

 

If ST1 and ST2 is not the easiest combination of the ST exams then what other ST exam do you think would be easier to study along with ST2? I work for a life company so I don't want to take ST3 and ST6 is probably the hardest ST exam.

 

Don't pick the "easiest" exam - a subjective assessment in any case. Pick the subject that interests you and will be of most relevance to your career. You don't wish to study GI which is fair enough if you don't plan to work in that area. Suggest you rule out pensions, unless you plan to work in that area, on same rationale. You've ruled out ST6 as you find this material difficult, so this leaves you a straight choice between ST1 and ST5. Most life insurance students will face this same decision. Read the syllabus for each and go with the one that's best for you. I chose ST5 and found it an interesting course especially in the current economic climate, but that doesn't mean it's best for you.

 

A few comments from me as an ST1 tutor (for what it’s worth!).

Definitely agree with Zebedee, you must take the combination of exams that most interests you. Some students will have an eye on their future career plans too (but I’d like to think that in most cases this would be consistent with one’s interests ). The examiners try to ensure that the ST subjects are of broadly equal difficulty in any case. A lot of students tell me they find ST1 more interesting that ST2, once they get into it.

There is certainly some overlap in the core reading between ST1 and ST2. However, there are important differences and additions. I see all too many students who take ST1, thinking it will be “easy” because they have already studies ST2, then come a cropper because they haven’t done enough preparation.

Apart from the occasional bookwork question, ST1 exam questions generally have different emphasis from ST2 – e.g. they may expect you to include more on product specifics or meeting customer needs. This is not difficult so long as you’re aware that it’s not the same as ST2 and you know your stuff.

Note that the chapter on reinsurance is, in some respects, different from ST2 (at least what I remember of ST2). For example, it deals with surplus reinsurance differently (there’s no reducing retention), and it includes more on non-proportional reinsurance (e.g. XL) and financial reinsurance (for short-term insurers).

Hope this is of some help - the choice is up to you!