Statistical models for individual loss severity, claim frequency, and aggregate loss distributions including compound distributions.
These are the key learning objectives for Severity, Frequency, and Aggregate Models on SOA Exam FAM. Paraphrased from the public SOA syllabus — we recommend also checking the current syllabus on soa.org before your exam sitting.
Model individual claim severity using distributions such as exponential, gamma, Pareto, and lognormal
Model claim frequency using Poisson, negative binomial, and mixed Poisson distributions
Compute aggregate loss distributions using compound Poisson and collective risk models
Apply the recursive formula for compound distributions
Upload your ACTEX Exam FAM digital edition, scanned ASM pages, TIA handouts, or your own notes. exclam.ai extracts the Severity, Frequency, and Aggregate Models sections and generates flashcards automatically.
Generate multiple-choice quizzes specifically on Severity, Frequency, and Aggregate Models. Weak questions get re-surfaced until you get them right consistently.
Because Severity, Frequency, and Aggregate Models is 15–20% of your exam, losing it during review costs you. FSRS brings it back at the optimal moment.
SOA Exam FAM has 7 topic areas. Severity, Frequency, and Aggregate Models is weighted at approximately 15–20% of the exam — here is where it sits relative to the other topics.
| Topic area | Weight |
|---|---|
| Insurance Coverages and Retirement Products | 5–10% |
| → Severity, Frequency, and Aggregate Models | 15–20% |
| Parametric Estimation | 10–15% |
| Mortality and Survival Models | 10–15% |
| Life Insurance Pricing and Reserving | 15–20% |
| Short-Term Insurance Pricing and Reserving | 15–20% |
| Option Pricing Fundamentals | 5–10% |
Structure and features of common insurance and retirement products including life insurance, annuities, health, and short-term insurance.
Maximum likelihood and method of moments estimation for parametric models, including goodness of fit testing.
Life table construction, force of mortality, select and ultimate mortality, and multiple-decrement models.
Pricing and reserving for life insurance and life annuity products using the equivalence principle and benefit reserves.
Pricing, loss reserving, and credibility for short-term insurance products including property, casualty, and health.
Introduction to option pricing including put-call parity, binomial models, and Black-Scholes pricing for European options.
Upload your ACTEX Exam FAM digital edition, scanned ASM pages, TIA handouts, or your own notes. exclam.ai generates a fully guided study plan with adaptive flashcards and quizzes for this topic.