Actuaries must pass a series of professional exams in order to become certified. The exams are administered by the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) in the United States. The exams cover a wide range of topics including probability, statistics, mathematical finance, economics, financial reporting and regulation, and the specific practices and principles of the actuarial profession. For purposes of this article, we will focus on the exams administered by the SOA.
The preliminary exams are the first step in the process of becoming a fully credentialed actuary. They are a set of professional exams and other requirements that cover the fundamental concepts and principles of actuarial science. Once you have passed the preliminary exams, you will be eligible to apply for the Associate of the Society of Actuaries (ASA) designation. A full list of requirements for the ASA designation can be found here.
Is the actuarial profession for me?
Although exams are a big part of the actuarial profession, they are not the only thing that you will be doing as an actuary. Many actuaries work in a variety of roles that require a wide range of skills that go beyond the exams.
Actuaries use mathematical and statistical techniques to assess and manage risks in areas such as insurance, finance, and investment. The field requires strong analytical and problem-solving skills, as well as the ability to work well with numbers and data. If you enjoy these types of challenges and are interested in a career in a business-related field, then becoming an actuary may be a good fit for you. It's also important to research the field and talk to people in the industry to gain a better understanding of the day-to-day work and career prospects.
The preliminary exams are designed to test the knowledge and understanding of the candidate on a wide range of topics, with a heavy focus on calculations. On the other hand, the day-to-day work of an actuary involves applying the knowledge and skills learned through the credentialing process to real-world problems and projects. The overlap between the exam material and the job responsibilities of an actuary may not always be clear at first.
Check out our newcomers forum to learn more about what others are saying about breaking into the actuarial profession.
How do I start?
Regardless of whether you're a career changer, a recent graduate, or a seasoned professional, most employers will only seriously consider you for an entry-level position if you have passed at least one actuarial exam. Passing an exam demonstrates a commitment to the profession and a certain level of aptitude to perform the job duties of an entry-level actuary. In general, the more exams you pass, the more marketable you will be to potential employers.
If this is your first time learning about actuarial exams, we recommend you check out our database of practice questions to get a feel for the types of questions that you will be seeing on the exam. You can also browse our exam prep forum to ask any questions that you may have about the exams.
Although you can start with any exam, the majority of candidates start with either Exam P or Exam FM.
How long do I need to prepare?
The SOA and CAS recommend candidates study 100 hours for every hour of the exam. For Exam P, which is a 3 hour long exam, this means that you should plan to study for 300 hours. For Exam FM, which is a 2.5 hour long exam, this means that you should plan to study for 250 hours.
The actual study time will vary depending on your background and experience. If you have a strong background in the subject material, you may be able to study for less time. Conversely, if you have a weaker background in the subject material, you may need to study for more time.
Regardless of your background, there are many tactics that you can learn to study more efficiently. For some tips and tricks, check out our blog post on Better Study Habits to learn more.
Conclusion
Becoming an actuary can be a rewarding career choice, but it ultimately depends on your interests and skills. For most candidates, it takes several years to complete all the required exams and become an ASA. Once candidates achieve the ASA designation, they can continue to work towards the Fellowship designation.