Have you ever read through a chapter of the syllabus or exam study material feeling like you understand it, only to struggle with explaining why the concepts or formulas work? This is common with passive studying, but there’s a useful studying technique that can help.
That is, the Feynman Technique, named after renowned physicist Richard Feynman. Known for his exceptional ability to break down complex topics, Feynman believed that true understanding meant being able to explain something simply. For those of us tackling upper-level CAS exams like CAS Exams 5-9, this approach is particularly valuable.
How to Study with the Feynman Technique
Here’s how to implement the technique when studying new material:
- After studying a section, close your materials and pretend you’re explaining it to someone.
- When you hit a point where your explanation becomes muddled (and you will), mark that topic for review. Maybe you can recite the formula of the Cape Cod method but struggle to explain when we might use it over the development method.
- Return to your study materials, focusing on those unclear areas, and work through more examples until the concept clicks.
- Try explaining it again, this time with better understanding.
If you struggle with explaining a concept, you’ve just identified a gap in your understanding. That’s exactly what makes this technique so powerful – it reveals what you actually know versus what you think you know.
The Feynman Technique in Practice
Below are two ways to implement the Feynman Technique in your studying:
- One of the most effective ways to use this technique is to pretend you’re teaching a classroom. Find an empty room (or a very patient pet), and explain concepts like you’re giving a lecture. You might feel silly at first, but verbalizing your understanding out loud forces your brain to organize information in a coherent way.
- Another practical application is participating in the online course forum. When you see a question from another student, don’t just scroll past it – try to answer it, even if you’re not 100% confident. The process of formulating an explanation will help solidify your own understanding and highlight any areas where you need to review.
An Example
Below is an example of how you might explain the concept of Insurance to Value (ITV) and coinsurance clauses from CAS Exam 5:
Full Insurance to Value (ITV) means insuring a property for its full replacement cost. Here’s why it matters and how coinsurance helps:
Think of two identical buildings worth $1 million each. Owner A insures for full value ($1 million), paying higher premiums. Owner B only insures for $500,000, paying lower premiums.
Without coinsurance, if each has a $100,000 loss:
- Owner A gets $100,000
- Owner B gets $100,000 This isn’t fair – Owner B paid less but got the same benefit.
⠀With 80% coinsurance:
- Owner A still gets $100,000
- Owner B only gets $62,500 ($500k/$800k × $100k) – Now Owner B’s lower premium comes with a penalty, making the system more equitable.
This encourages everyone to maintain proper ITV and ensures those who pay more in premiums get more protection.
Beyond the CAS Exams
The usefulness of the Feynman Technique extends beyond exam preparation. As practicing actuaries, we frequently need to explain complex concepts to non-technical stakeholders. Being able to break down sophisticated statistical methods to clients or explain predictive modeling approaches to product managers becomes invaluable.
Next time you’re struggling with a concept on your next exam, try explaining it out loud as if to someone else. If you can’t explain it simply, you’ve just identified where you need to focus your study efforts. Start with one concept today, and see how explaining it in your own words improves your understanding.