Course Preview

Course Objective

Financial Economics(CT8) provides a grounding in the principles of actuarial modelling. The course focusing on stochastic asset-liability models and the valuation of financial derivatives. It equips the student with a knowledge of the behavior of financial markets, measures of risk, determining reserves for a non-life insurer and price options. The subject includes theory and application of the ideas to real data sets using excel.

Course Structure

The course includes 45+ hours online self learning class and 5+ hrs individual one to one online session with the expert faculty.


On completion of the subject you will be able to:
  1. describe, interpret and discuss the theories on the behaviour of financial markets.
  2. discuss the advantages and disadvantages of different measures of investment risk.
  3. describe, construct, interpret and discuss the models underlying asset valuations.
  4. describe, construct, interpret and discuss the models underlying liability valuations.
  5. describe, construct, interpret and discuss the models underlying option pricing.

Syllabus Topics

  1. Theories of financial market behaviour (15%)
  2. Measures of investment risk (15%)
  3. Stochastic investment return models (10%)
  4. Asset valuations (20%)
  5. Liability valuations (20%)
  6. Option theory (20%)

Skill Levels

In the CT subjects, the approximate split of assessment across the three skill types is 20% Knowledge, 65% Application and 15% Higher Order skills.

Exam Structure

The exam involves 3 hours paper-based exam.


If you have passed the ACET, this means you are eligible for student membership of the IAI. With effect from 21st June 2014, Friday, Application for Student Membership of Institute of Actuaries of India (IAI) for ACET passed students has become online. Click on the below link to fill the Online Admission Form.

You have to renew your annual membership every year between 1st April to 30th June to be able to appear for the Actuarial Exams. For queries related to annual membership, you may get in touch with Ms. Vijaya at The students taking admission in any month during the year, be it February or March have to again renew their annual membership as mentioned above.

On getting your membership Id, you will activate your account and decide on the exams you wish to sit for and apply for the examinations in the upcoming exam diet (March or September) as well as order the study material from IAI. Details of how to order study material, how to apply for an exam and exam time-table for the next diet are available from the Institute’s website under the following links Study material —

One is suggested to follow the Course flow, beginning with the CT papers. There is no prescribed order in which Core technical subjects must be taken. However, when attempting the Core technical subjects it is worth remembering that some subjects build upon others. There are therefore some logical routes through the subjects. The particular route chosen may depend on the area in which you are working or on your past educational background. The order in which the Core technical subjects CT1-CT8 build on each other follows the numerical sequence of the subjects. So, if you are in doubt, you may choose the numerical order as a default option. In general, it may be worth noting that: CT2 – Finance and financial reporting assumes knowledge of CT1 CT4 – Models assumes knowledge of CT1 and CT3 CT5 – Contingencies assumes knowledge of CT1, CT3 and CT4 CT6 – Statistical methods assumes knowledge of CT3 and CT4 CT8 – Financial economics assumes knowledge of CT1, CT4 and CT7 You may wish to leverage your college education to select the appropriate subject to begin with. For those with a background of the following disciplines, typical choices for your first exam might be: Mathematics/Engineering: CT1 Statistics: CT3 Economic: CT7 Accounts / Commerce: CT2 Whilst planning a route through your exams, you should note that there is no compulsory order of studying CT subjects. The numbering of the Core technical subjects represents an ordering that would be appropriate for anyone working in life insurance or pensions. Anyone working in general insurance may prefer to take CT4 and CT6 at any stage after studying CT1 or if you are working in investment may prefer to take CT7 and CT8 before CT4, CT5 and CT6.

The actual amount of time each student needs to spend on a particular subject will vary from student to student. Quality of study time is far more important than quantity of study time. Nevertheless, the following broad guidelines may be suggested for number of hours of intensive study: Core technical subjects (CT1–CT8) Between 125 and 150 hours depending on the subject and an individual student’s past educational background in the subject. Business awareness (CT9) At least 20 hours plus two-day practical course Actuarial risk management (CA1) 400 hours Model documentation, analysis and reporting (CA2) 50 hours Communications (CA3) 50 hours Specialist technical subjects (ST) 200 hours Specialist applications subjects (SA) 300 hours

You can appear for a maximum of three subjects in a single examination diet. Whilst there is no prescribed number of subjects, a reasonable work-load for an exam diet might be one of the following: • Two-three Core technical subjects • Actuarial risk management (CA1) paper • two Specialist technical subjects • one Specialist technical subject and the chosen Specialist applications • some other comparable combination

Subjective as well as computer based, visit Institute’s website for more updates on latest syllabus and exam pattern.

No, there is no negative marking.

There is no fixed duration to complete the course and you can take the examinations at a pace that suits your circumstances. Since all the 15 subjects prescribed are to be cleared before one is awarded the Fellowship, continued and sustained effort is necessary to complete the course. Additionally you need a minimum of three years’ relevant work experience for qualification as a Fellow. Keeping the above factors in mind, the typical time-frame for qualification in recent years has been 5-8 years.

The Institute of Actuaries of India(IAI)/Institute and Faculties of Actuaries(UK), does not endorse, promote, or warrant the accuracy or quality of the products or services offered by
  • Rs.9,000.00
  • 180 Days


    Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by CorporateRishi for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to CorporateRishi nor is GARP® responsible for any fees or costs of any person or entity providing any services to CorporateRishi Study Program.  FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc.

    CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by CorporateRishi. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

    CAIA does not endorse, promote, review or warrant the accuracy of the products or services offered by CorporateRishi nor does it endorse any rates claimed by the provider. CAIA is not responsible for any fees or costs paid by the user to CorporateRishi nor is CAIA responsible for any fees or costs of any person or entity providing any services to CorporateRishi. CAIA ® CAIA. Association , Chartered Alternative Investment Analyst, and Chartered Alternative Investment Analyst Association , are services marks and trademarks owned by CHARTERED ALTERNATIVE INVESTMENT ANALYST ASSOCIATION, INC., of Amherst, Massachusetts

    © 2020 RIFT Pvt. Ltd. All Rights Reserved.