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Business Management · Activities of the Institute of Actuaries of India

IAI Education, Examinations and Qualification Pathway

Updated 11 October 2026 · Fact-checked

The IAI trains students through staged examinations. Core Principles has three modules: Actuarial Statistics, Actuarial Mathematics and Business. You must pass all of them to qualify as an Associate or Fellow. CS and CM subjects have Paper A and Paper B. CB subjects are single papers with a pass mark of at least 50%.

Understand Education, Examinations and Qualification Pathway

The Institute of Actuaries of India (IAI) is the professional body that educates and examines actuarial students in India. Its education system is staged. You begin with the Core Principles stage, which builds the technical and business base every actuary needs.

Core Principles has three modules. Actuarial Statistics has CS1 (Actuarial Statistics) and CS2 (Risk Modelling and Survival Analysis). Actuarial Mathematics has CM1 (Actuarial Mathematics for Modelling) and CM2 (Economic Modelling). Business has CB1 (Business Finance), CB2 (Business Economics) and CB3 (Business Management). All three modules must be passed to qualify as an Associate or Fellow.

The papers differ by subject type. Each CS and CM subject has two examinations. Paper A is a written paper of 3 hours 15 minutes. Paper B is a computer-based exam of 1 hour 45 minutes, in R or Excel. CB1 and CB2 are written papers of 3 hours 15 minutes. CB3 combines a ten-day online business game, seven exercises or case studies, and an online examination.

Most papers open with multiple-choice questions of 2 marks each, followed by written questions. The number of MCQs is not fixed by the IAI and has varied between sessions. In recent papers, CS2 Paper A, CM1 Paper A and CB3 opened with 15 MCQs, and CB1 with 10.

Pass marks are set by the IAI and may be amended session by session. From the November 2025 session, for CS1, CS2, CM1 and CM2 you need at least 30% in each of Paper A and Paper B and 50% in aggregate, with Paper A and Paper B weighted 70:30. For CB1, CB2 and CB3 you need at least 50%. Always check the current rules before you plan.

Exemptions from some exams may be available to students with qualifications from other recognised bodies. The IAI decides these. Check the current exemption policy on the IAI website rather than relying on hearsay, because the rules and eligible bodies can change.

Key rules to remember

Core Principles modules
Actuarial Statistics (CS1, CS2) + Actuarial Mathematics (CM1, CM2) + Business (CB1, CB2, CB3)
All three modules must be passed to qualify as an Associate or Fellow.
Pass rule for CS1, CS2, CM1, CM2 (from November 2025)
Paper A ≥ 30%, Paper B ≥ 30%, aggregate ≥ 50%; aggregate = 0.7 × Paper A + 0.3 × Paper B
Paper A and Paper B are weighted 70:30. The IAI may amend this and confirms it with results.
Pass rule for CB1, CB2, CB3
Score ≥ 50%
Single overall pass mark, subject to IAI amendment.
Paper formats
CS/CM Paper A: 3 h 15 min; Paper B: 1 h 45 min computer-based; CB1/CB2: 3 h 15 min; CB3 (recent): 1 h 30 min
Recent Paper A, CB1, CB2 and CB3 papers carried 100 marks.
MCQ marks
MCQ marks = number of MCQs × 2
For example, 15 MCQs give 30 marks and 10 MCQs give 20 marks. The number varies by session.

How to solve Education, Examinations and Qualification Pathway questions

Questions on this topic ask you to state, apply or compare IAI rules. Use the same method each time so you do not miss a condition.

  1. 1Identify the subject type: CS/CM (Paper A and Paper B), CB1/CB2 (written), or CB3 (game, exercises and online exam).
  2. 2Note exactly what the question asks: structure, pass mark, exemption or pathway.
  3. 3Recall the rule with its conditions, such as the 30% minimum in each paper and 50% aggregate.
  4. 4If a calculation is needed, apply the 70:30 weighting to the marks given and check the minimums separately.
  5. 5Check whether the rule is session-specific. If so, say that the IAI may amend it.
  6. 6State the conclusion clearly: pass, fail or what remains to be completed.
  7. 7Do not invent details such as exemption eligibility or fees; say these are decided by the IAI.

Quickest way: Two-check pass test

When to use it: Use this when a question gives marks in Paper A and Paper B and asks whether the student passes a CS or CM subject.

  1. Check Paper A is at least 30% and Paper B is at least 30%.
  2. Compute 0.7 × Paper A% + 0.3 × Paper B%.
  3. Pass only if both checks succeed and the aggregate is at least 50%.
  4. For CB subjects, simply check the overall score is at least 50%.

Common mistakes in Education, Examinations and Qualification Pathway

  • Applying the 50% CB rule to CS and CM subjects.

    Students remember one pass mark for all subjects.

    Fix: Remember CS and CM have two papers: 30% in each and 50% aggregate. CB subjects need 50% overall.

  • Averaging Paper A and Paper B equally.

    The simple mean feels natural.

    Fix: Use the 70:30 weighting: 0.7 × Paper A + 0.3 × Paper B.

  • Checking only the aggregate and ignoring the 30% minimums.

    A high Paper A can hide a weak Paper B.

    Fix: Always test each paper against 30% first.

  • Stating that the number of MCQs is fixed.

    Students generalise from one past paper.

    Fix: Say the IAI does not fix the number and it has varied between sessions.

  • Assuming exemptions are automatic for any foreign qualification.

    Rumours circulate about other bodies' recognition.

    Fix: State that exemptions are decided by the IAI under its current policy and must be confirmed with it.

  • Treating CB3 as only a written exam.

    CB1 and CB2 are written, so students assume CB3 is too.

    Fix: CB3 includes a ten-day online business game, seven exercises or case studies and an online examination.

Worked examples

Example 1

A student scores 40% in CM1 Paper A and 70% in CM1 Paper B. Under the pass rule from November 2025, does the student pass?

Show the solution
  1. Check minimums: 40% ≥ 30% and 70% ≥ 30%, so both are met.
  2. Aggregate = 0.7 × 40 + 0.3 × 70 = 28 + 21 = 49%.
  3. Required aggregate is 50%. 49% < 50%.

Answer: The student does not pass, because the aggregate of 49% is below 50%, even though both minimums are met.

Example 2

A student scores 28% in CS2 Paper A and 90% in CS2 Paper B. Does the student pass under the same rule?

Show the solution
  1. Check Paper A: 28% < 30%, so the minimum is not met.
  2. For completeness, aggregate = 0.7 × 28 + 0.3 × 90 = 19.6 + 27 = 46.6%.
  3. The aggregate is also below 50%, and the Paper A minimum already fails.

Answer: The student does not pass. Paper A is below the 30% minimum and the aggregate is 46.6%, below 50%.

Exam tips

  • Learn the module structure and the subject codes with their full names; MCQs often test this.
  • Memorise the pass rule for CS/CM and CB separately, with the 70:30 weighting.
  • Always add that the IAI may amend pass marks and confirms them with results.
  • For exemptions or pathway questions, avoid specifics you are unsure of and refer to the IAI's current policy.
  • In calculation questions, test the minimum in each paper before the aggregate.

Practice questions from Activities of the Institute of Actuaries of India

Education, Examinations and Qualification Pathway: frequently asked questions

What are the subjects in IAI Core Principles?

There are seven: CS1, CS2, CM1, CM2, CB1, CB2 and CB3. They sit in three modules: Actuarial Statistics, Actuarial Mathematics and Business. All must be passed to qualify as an Associate or Fellow.

What is the pass mark in CS and CM subjects?

From the November 2025 session you need at least 30% in each of Paper A and Paper B and 50% in aggregate. Paper A and Paper B are weighted 70:30. The IAI may amend this and confirms it with results.

How is CB3 examined?

CB3 includes a ten-day online business game, seven exercises or case studies and an online examination. Recent CB3 papers were 1 hour 30 minutes for 100 marks, starting with 15 MCQs of 2 marks.

Can I get exemptions from IAI exams for other qualifications?

The IAI may grant exemptions on the basis of qualifications from other recognised bodies. Eligibility and conditions are set by the IAI and can change, so confirm on its website before you plan.