“With every challenge you face, there is an opportunity hidden that will lead you towards the path of wealth and abundance.” – Stephen Richards
Actuarial Exams 101
By progressing through an examination process, actuaries earn professional credentials and career opportunities. In some ways, the journey is similar to that of accountants, attorneys and physicians—with an emphasis on how mathematical analysis can support strategic business decisions.
Unlike other professions, in actuarial science you’ll have the opportunity to work as an actuary while completing the examination process. Though, to get the best start on a rewarding career, many soon-to-be actuaries begin taking exams while still in college. Of those that do, most achieve Associateship in three to five years.
There are 3 Preliminary Exams – P, FM, and IFM. These 3 exams are recognized by both actuarial Societies.
Later exams differ depending on which Society you choose.
Societies
Society of Actuaries (SOA)
Life, Health, Retirement
Casualty Actuarial Society (CAS)
General Insurance – e.g.: car, homeowners, liability insurance.
Destinations
Associateship
Actuarial candidates who pass the first segment of requirements earn an Associateship.
SOA – Associate of the Society of Actuaries (ASA)
CAS – Associate of the Casualty Actuarial Society (ACAS)
Fellowship
An actuarial candidate who meets all Associate requirements can begin completing the additional training and exams to earn the highest designation of Fellow.
SOA – Fellow of the Society of Actuaries (FSA)
CAS – Fellow of the Casualty Actuarial Society (FCAS)
What Exams Are There?
7 exams are required for achieving an Associateship, the first 3 exams are the same for both societies.
Preliminary Exams:
P (Probability)
FM (Financial Mathematics)
IFM (Investment & Financial Markets)
For achieveing ASA, the below 4 exams are required in addition to the Preliminaries:
STAM (Short-term Actuarail Mathematics)
LTAM (Long-term Actuarail Mathematics)
SRM (Statistics for Risk Modeling)
PA (Predictive Analytics)
For achieving ACAS, the below 4 exams are required in addition to the Preliminaries:
MAS-I (Modern Actuarial Statistics I)
MAS-II (Modern Actuarial Statistics II)
Exam 5 (Basic Techniques for Ratemaking & Estimating Claim Liabilities)
Exam 6 (Regulation & Financial Reporting)
For SOA, you can expect 3-4 additional exams before achieving FSA;
For CAS, 3 addtional exams are required before achieving FCAS.
Why Take Exams?
How To Pass?
There is no shortcut to success in the exam process. It takes a lot of hard work, dedication and motivation to get through the many hours of independent study that are required to prepare for each exam. While everyone studies differently, the typical candidate studies about 100 hours for every hour of the exam. For example, exam P/1 is a three hour exam. That means you will be hitting the books for 300 hours to fully master the concepts tested on that exam.
