CAS Exam 5 Guide
Exam 5 is where the CAS path turns from statistics into operating property-casualty actuarial work: rate indications, trend, credibility, triangles, chain-ladder style thinking, Bornhuetter-Ferguson style thinking, and communication of reserving results.
- Role
- Exam Guide
- Level
- Core
- Time
- Reference
- Freshness
- Stable
What Exam 5 Entails
- Applied property-casualty actuarial work in ratemaking and reserving.
- A CAS exam where spreadsheet and constructed-response discipline matter, not just recognition of methods.
- Core practice: rate indications, trend, credibility, triangles, reserving methods, diagnostics, and communication of results.
CAS Exam 5
Current Exam 5 outline is mapped for format, item types, equal ratemaking and reserving weights, and the official reading stack built around Werner and Modlin, Friedland, and core ASOPs.
What the official PDFs establish
- Appointment length
- 4.5-hour appointment with a 4-hour exam duration.
- Item types
- Question formats include constructed response and spreadsheet items in addition to multiple choice, multiple selection, point and click, fill in the blank, and matching.
- Cognitive mix
- Remember 5-10%, Understand and Apply 55-60%, Analyze and Evaluate 35-40%, Create 0-5%.
Topic and domain coverage
| Topic | Weight | Source |
|---|---|---|
| Ratemaking | 45-55% | |
| Estimating Claim Liabilities (Reserving) | 45-55% |
Chapter and reading intelligence
- Werner and Modlin
Basic Ratemaking is assigned from chapters 1 and 3-16, with appendices included and chapter 2 excluded.
- Friedland
Estimating Unpaid Claims Using Basic Techniques is assigned across all chapters, excluding the appendices.
- ASOP and CAS standards
ASOP 12, ASOP 13, ASOP 43, and the CAS Statement of Principles Regarding Property and Casualty Insurance Ratemaking remain explicit Exam 5 readings.
Official files used by the map
- CAS content outlinecontent-outline
Primary source for format, domain tasks, and official ratemaking and reserving readings.
Source: Exam 5 Content Outline 2025
Quick Answer
Exam 5 is the CAS basic techniques exam for ratemaking and estimating claim liabilities. It is one of the clearest ACAS-path signals that you are now in applied property-casualty actuarial work rather than a general statistics sequence.
Official Format And Why Exam 5 Feels Different
The current content outline uses a 4.5-hour appointment with a 4-hour exam duration, but the bigger difference is the response format. Exam 5 can use constructed-response and spreadsheet items in addition to the standard CAS computer-based item types.
That matters because Exam 5 is not just a recognition exam. You need to compute, organize, justify, and communicate. Spreadsheet fluency and disciplined written reasoning are part of the skill, not optional polish.
The Two Halves Of The Exam
The outline splits Exam 5 almost evenly between ratemaking and reserving. Ratemaking covers exposure bases, on-leveling, premium adjustments, trend, credibility, pure premium and loss ratio indications, and final rate-change judgment. Reserving covers triangles, tail factors, chain-ladder style methods, Bornhuetter-Ferguson, Cape Cod, frequency-severity, adequacy review, and communication to stakeholders.
That balance is useful because it tells you how to study. You should not prepare only as a pricing candidate or only as a reserving candidate. The exam expects a working foundation in both.
- Ratemaking: 45-55%.
- Estimating claim liabilities (reserving): 45-55%.
What The Official Readings Emphasize
The ratemaking side is built around Werner and Modlin, the CAS Statement of Principles Regarding Property and Casualty Insurance Ratemaking, and ASOP 12 and 13. The reserving side is built around Friedland and ASOP 43.
The outline also makes two practical reading notes easy to miss: the appendices to Werner and Modlin are in scope, and the Friedland appendices are excluded. That kind of boundary matters on CAS exams because the reading list is part of the test design, not background decoration.
Why Exam 5 Matters In The CAS Sequence
MAS-I and MAS-II build the statistical and modeling foundation. PCPA pushes predictive analytics. Exam 5 is where the CAS path asks whether you can use actuarial judgment inside classic P&C pricing and reserving workflows.
That is also why Exam 5 overlaps conceptually with some ASTAM material without being the same exam. Both touch reserving and rate-level style reasoning, but Exam 5 is much more explicitly embedded in the CAS property-casualty practice framework and standards stack.
How To Study Exam 5 Rationally
A strong study plan uses two parallel tracks: ratemaking and reserving. Within each track, practice should alternate between calculations, spreadsheet organization, and explanation. Candidates who only drill numeric methods often get stuck when the exam asks for judgment, diagnostics, or communication.
The best pressure test is simple: can you build the analysis, explain why the method fits, and describe what would make you distrust the result? If not, you are still studying procedures rather than actuarial work.