Actuarial exams cover topics such as mathematics, accounting, economics, and law, and are required for employment and advancement as an actuary. In the US, exams are administered by the SOA and CAS, with five preliminary exams covering probability, financial mathematics, financial economics, life contingencies, and actuarial models. Additional exams and years of experience equate to career advancement and salary increases. The SOA path requires completion of the FAP online course and choosing one of five paths, while the CAS path requires passing all preliminary exams, earning VEE, completing two online classes and two exams, and passing three additional exams to become a fellow.
The actuarial exams are a series of tests, consisting of topics such as mathematics, accounting, economics and law, required for employment and advancement as an actuary. In the United States, exams are administered by two organizations: the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). Other countries may have their own methods of examining and licensing actuaries. Generally speaking, at least one exam is required to work as an actuary. Additional exams completed, along with years of experience in the profession, equate to career advancement and salary increases.
Prospective actuaries in the United States face five preliminary actuarial exams, which can be applied to any actuarial specialty. These five exams cover probability, financial mathematics, financial economics, life contingencies, and actuarial models. The five preliminary exams are administered by SOA or CAS. Upon completion of these five examinations, the actuary must decide which path he wishes to pursue. CAS specializes in the areas of property and casualty insurance, while SOA focuses on all other aspects of actuarial science, such as life, health and pension risk assessment.
The first five actuarial exams require an advanced level of mathematical knowledge, while the additional exams require an in-depth understanding of the actuary’s respective field. Most of this knowledge is gained by working in the profession, from the guidance of a mentor, and/or through continuing education. While a bachelor’s degree is usually not required for initial employment, it is often required for continued advancement in the profession.
Actuaries who choose the SOA path will be required to complete the Fundamentals of Actuarial Practice (FAP) online course. This course features eight lessons and two tests and is required for membership. Upon completion of the FAP, the actuary must choose one of five paths: Corporate Risk Management, Investment, Individual Life and Annuities, Retirement Benefits or Group and Health. All five paths require three lessons and two final exams. Actuaries who follow this path will be qualified to reach the highest positions as specialists in the field of life insurance or retirement planning.
Those who follow the CAS path earn associate membership by passing all preliminary actuarial exams, earn Validation by Educational Experience (VEE), and complete two online classes and two exams. After the actuary becomes an associate member, the next step is to complete three additional exams. Upon completion of these five examinations, the actuary is considered a fellow. The final three exams are only offered once a year, usually between May and October.
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