Maximum likelihood and method of moments estimation for parametric models, including goodness of fit testing.
These are the key learning objectives for Parametric Estimation on SOA Exam FAM. Paraphrased from the public SOA syllabus — we recommend also checking the current syllabus on soa.org before your exam sitting.
Compute maximum likelihood estimates for complete and censored data
Apply method of moments and percentile matching to fit parametric models
Evaluate goodness of fit using chi-square, Kolmogorov-Smirnov, and Anderson-Darling tests
Upload your ACTEX Exam FAM digital edition, scanned ASM pages, TIA handouts, or your own notes. exclam.ai extracts the Parametric Estimation sections and generates flashcards automatically.
Generate multiple-choice quizzes specifically on Parametric Estimation. Weak questions get re-surfaced until you get them right consistently.
Because Parametric Estimation is 10–15% of your exam, losing it during review costs you. FSRS brings it back at the optimal moment.
SOA Exam FAM has 7 topic areas. Parametric Estimation is weighted at approximately 10–15% 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.
Statistical models for individual loss severity, claim frequency, and aggregate loss distributions including compound distributions.
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.