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Revision of the "School and Exam Questions" section of the Wiki
Hi everyone, I have created my first rough draft of the update to the "Schools and Exam Questions" part of the wiki and want to get everyone's feedback to add/remove/change. Please let me know what you guys think
School and Exam Questions
How do I get started taking an exam? There are two main professional actuarial societies in the United States the SOA (Society of Actuaries) and the CAS (Casualty Actuarial Society). The first 3 exams (Exam 1/P, Exam 2/FM, Exam 3F/IFM) are shared between both societies. You should probably start with P or FM unless you have special experience in one of the other areas. Even though the exams are numbered (1/P, 2/FM, …), you need not take them in that order. Typically, one would start with P, but FM has less calculus, so some candidates start there.
First time exam takers you will need to create an account with the SOA.
CBT refers to “Computer Based Testing” and after registering you will choose a Prometric Testing Center to take your exam.
For Exam P and FM if you choose to take a CBT exam you will receive a preliminary pass/fail following this exam. There has only been one case where this preliminary pass/fail was incorrect and it was an overturn of a fail to a pass (student received a preliminary fail but this was overturned and they passed) thus it is quite accurate
To pass the first 2-3 exams, most candidates use a study manual or online seminar along with an online practice tool. Some also attend online or real-life seminars. We do not endorse any particular study manual/online seminars/online exam prep, but popular ones for Exams (P and FM) (in no particular order) are:
ASM
Coaching Actuaries
The Infinite Actuary (TIA)
ACTEX
Mahler
Popular Online exam preparation after finishing the material (This is not required):
ADAPT (A Coaching Actuaries Product)
The "rule of thumb" for exam study is 100 hours per hour of exam. P and FM are both three hours long, so that implies 300 hours of studying. This is a rule of thumb and varies between candidates many successful candidates study less than that, and others will find that they need more than this time to study.
It is typically advised that candidates be ready to spend about a month after finishing the study material to take and review practice exams. To get the most out of your review of the practice exams it is recommended that you take the time to figure out why you got each question wrong, maybe you have to revisit the study manual, maybe you have to learn a formula better, maybe you rushed through the question and misread it or made an algebra mistake, etc
If you're looking to start taking an exam, recognize this will take good amounts of time on your part. You can find some statistics on pass marks from the SOA. Generally they range from about 40-50% of candidates, depending on the exam. Undergraduate college students: do not expect to walk out of your probability class final and into the exam room and pass without additional effort.
Exam Scores - Thanks to r_a_g_s for this writeup This is how it works. First, they figure out what the passing mark should be (It's often around 66-71%). Once the passing mark is determined the formula for your score on the exam is as follows. Let P be the mass mark: Passing Scores:
If you score between P and 1.1P, you get a 6;
If you score between 1.1P and 1.2P, you get a 7;
If you score between 1.2P and 1.3P, you get an 8;
Between 1.3P and 1.4P, 9;
Greater than 1.4P, 10;
Failing Scores:
If you score between 0.9P and P, you get a 5;
Between 0.8P and 0.9P, 4;
Between 0.7P and 0.8P, 3;
Between 0.6P and 0.7P, 2;
Between 0.5P and 0.6P, 1;
Less than 0.5P, 0.
Does exam score matter when applying for jobs? In most cases no. Exam scores usually don't matter to employers. Some employers request exam score information, but in general most are satisfied that a candidate achieved a passing score. If the score information is desired but not on the resume, an employer will probably ask a candidate for it when interviewing.
Should I learn a programming language? Actuaries work with computers, and that's unlikely to change. The more you understand about how a computer works, the easier working with them becomes. Programming languages are a valuable tool in to that end. Some actuaries do a tremendous amount of programming, others barely do any. As a student, your first position will likely involve a lot of data manipulation and producing results. Programs will help with that and/or do it for you. An importing thing to note is that once you learn your first programming language it is typically a lot easier to another programming language.
Which software/programming language should I learn? Unfortunately, what software/programing languages are used varies from company to company. There are some companies that use more specific software you could learn, and there are others that use proprietary software you could never have access to until you started. However, it is highly recommended that you learn Excel first. Excel is near universally used in many actuarial jobs, and it's unlikely that you'll be worse off for knowing it. Knowing how to use common formulas, and manipulate data is a fundamental skill that all actuaries use.
One of the languages that can enhance your excel usages is VBA, VBA is a programming language that is built into excel and helps with automating tasks. Thus it is invaluable to learn because it will teach you the basics of programming while giving you flexibility and not locking you into one particular employer or system. VBA also requires no separate editor or compiler, so as along as you have Excel you have a place to practice and learn. Other Common programming languages (no particular order):
SQL
SAS
R
Python
What should I know before I enroll in a master's program? Pass a few exams before internship recruiting starts.
I'm an undergrad and think I want to be an actuary, what majors should I consider and what would be the benefits of each? The common majors that are recommended are:
Computer Science
Math
Statistics
The actuarial Science major is discussed below, but note that any major is fine as long as you are passing exams and getting internships, but not picking any quantitative major or business related major will not help with the achieving those goals.
What about an Actuarial Science Major? An Actuarial Science major is great major to get in that many schools provide both networking opportunities and exam preparation. However, the major is known to pigeon hole students to this career path and due to the heavy competition for EL (Entry Level) positions it may not be the best choice for some students.
Are there any courses that I should be taking in addition to my major? Something that cannot be stressed enough is that an Actuarial role is business role with a strong mathematical background. This means that soft skills are incredibly important, and anything that can help you improve those skills sets (Including taking classes or being part of clubs that improve communication) is recommended.
With the competition for Entry Level positions being high, what can I do to make myself stand out? The more of the following you have the higher your chances:
Having a high GPA
Getting and Succeeding in an Actuarial Internship(s)
Passing Exams
Extracurriculars
Leadership positions in school clubs
Developing strong communication skills
I am a career changer do I need an actuarial science major? Some say yes some say no. The biggest advantage of going back to school is to increase your chance of getting internships and the networking opportunities.
For what major should I pick see the "I'm an undergrad and think I want to be an actuary, what majors should I consider and what would be the benefits of each?" and "What about an Actuarial Science Major?" thread above.
What is a master's degree in actuarial science? It's a MS degree, but no different from BA/BS equivalent in terms of coursework. It's designed for people switching in from a completely unrelated major. Note that for most/all entry level positions a BA/BS will be sufficient.
Will I benefit from a master's in actuarial science? Some say yes, some say no. It is not required to get a position but some students find that it gives them an opportunity to get an internship with is highly beneficial at landing their first full time role or network with employers. Whether the time and/or tuition cost tradeoff is worth it is a personal decision.
Final update to Schools and Exam Questions part of Wiki
Hi everyone, I made a post a week and a half ago about updating the wiki. Here is current revision unless anyone suggests any additional changes will be used to update the wiki.
School and Exam Questions
How do I get started taking an exam? There are two main professional actuarial societies in the United States the SOA (Society of Actuaries) and the CAS (Casualty Actuarial Society). The first 3 exams (Exam 1/P, Exam 2/FM, Exam 3F/IFM) are shared between both societies. You should probably start with P or FM unless you have special experience in one of the other areas. Even though the exams are numbered (1/P, 2/FM, …), you need not take them in that order. Typically, one would start with P, but FM has less calculus, so some candidates start there.
First time exam takers you will need to create an account with the SOA.
CBT refers to “Computer Based Testing” and after registering you will choose a Prometric Testing Center to take your exam.
For Exam P and FM if you choose to take a CBT exam you will receive a preliminary pass/fail following this exam. There has only been one case where this preliminary pass/fail was incorrect and it was an overturn of a fail to a pass (student received a preliminary fail but this was overturned and they passed) thus it is quite accurate
To pass the first 2-3 exams, most candidates use a study manual or online seminar along with an online practice tool. Some also attend online or real-life seminars. We do not endorse any particular study manual/online seminars/online exam prep, but popular ones for Exams (P and FM) (in no particular order) are:
ASM
Coaching Actuaries
The Infinite Actuary (TIA)
ACTEX
Mahler
Popular Online exam preparation after finishing the material (This is not required):
ADAPT (A Coaching Actuaries Product)
The "rule of thumb" for exam study is 100 hours per hour of exam. P and FM are both three hours long, so that implies 300 hours of studying. This is a rule of thumb and varies between candidates many successful candidates study less than that, and others will find that they need more than this time to study.
It is typically advised that candidates be ready to spend about a month after finishing the study material to take and review practice exams. To get the most out of your review of the practice exams it is recommended that you take the time to figure out why you got each question wrong, maybe you have to revisit the study manual, maybe you have to learn a formula better, maybe you rushed through the question and misread it or made an algebra mistake, etc
If you're looking to start taking an exam, recognize this will take good amounts of time on your part. You can find some statistics on pass marks from the SOA. Generally they range from about 40-50% of candidates, depending on the exam. Undergraduate college students: do not expect to walk out of your probability class final and into the exam room and pass without additional effort.
Exam Scores - Thanks to r_a_g_s for this writeup This is how it works. First, they figure out what the passing mark should be (It's often around 66-71%). Once the passing mark is determined the formula for your score on the exam is as follows. Let P be the mass mark: Passing Scores:
If you score between P and 1.1P, you get a 6;
If you score between 1.1P and 1.2P, you get a 7;
If you score between 1.2P and 1.3P, you get an 8;
Between 1.3P and 1.4P, 9;
Greater than 1.4P, 10;
Failing Scores:
If you score between 0.9P and P, you get a 5;
Between 0.8P and 0.9P, 4;
Between 0.7P and 0.8P, 3;
Between 0.6P and 0.7P, 2;
Between 0.5P and 0.6P, 1;
Less than 0.5P, 0.
Does exam score matter when applying for jobs? In most cases no. Exam scores usually don't matter to employers. Some employers request exam score information, but in general most are satisfied that a candidate achieved a passing score. If the score information is desired but not on the resume, an employer will probably ask a candidate for it when interviewing.
Should I learn a programming language? Actuaries work with computers, and that's unlikely to change. The more you understand about how a computer works, the easier working with them becomes. Programming languages are a valuable tool in to that end. Some actuaries do a tremendous amount of programming, others barely do any. As a student, your first position will likely involve a lot of data manipulation and producing results. Programs will help with that and/or do it for you. An importing thing to note is that once you learn your first programming language it is typically a lot easier to another programming language.
Which software/programming language should I learn? Unfortunately, what software/programing languages are used varies from company to company. There are some companies that use more specific software you could learn, and there are others that use proprietary software you could never have access to until you started. However, it is highly recommended that you learn Excel first. Excel is near universally used in many actuarial jobs, and it's unlikely that you'll be worse off for knowing it. Knowing how to use common formulas, and manipulate data is a fundamental skill that all actuaries use.
One of the languages that can enhance your excel usages is VBA, VBA is a programming language that is built into excel and helps with automating tasks. Thus it is invaluable to learn because it will teach you the basics of programming while giving you flexibility and not locking you into one particular employer or system. VBA also requires no separate editor or compiler, so as along as you have Excel you have a place to practice and learn. Other Common programming languages (no particular order):
SQL
SAS
R
Python
What should I know before I enroll in a master's program? Pass a few exams before internship recruiting starts.
I'm an undergrad and think I want to be an actuary, what majors should I consider and what would be the benefits of each? The common majors that are recommended are:
Computer Science
Math
Statistics
The actuarial Science major is discussed below, but note that any major is fine as long as you are passing exams and getting internships, but not picking any quantitative major or business related major will not help with the achieving those goals.
What about an Actuarial Science Major? An Actuarial Science major is great major to get in that many schools provide both networking opportunities and exam preparation. However, the major is known to pigeon hole students to this career path and due to the heavy competition for EL (Entry Level) positions it may not be the best choice for some students.
Are there any courses that I should be taking in addition to my major? Something that cannot be stressed enough is that an Actuarial role is business role with a strong mathematical background. This means that soft skills are incredibly important, and anything that can help you improve those skills sets (Including taking classes or being part of clubs that improve communication) is recommended.
With the competition for Entry Level positions being high, what can I do to make myself stand out? The more of the following you have the higher your chances:
Having a high GPA
Getting and Succeeding in an Actuarial Internship(s)
Passing Exams
Extracurriculars
Leadership positions in school clubs
Developing strong communication skills
I am a career changer do I need an actuarial science major? Some say yes some say no. The biggest advantage of going back to school is to increase your chance of getting internships and the networking opportunities.
For what major should I pick see the "I'm an undergrad and think I want to be an actuary, what majors should I consider and what would be the benefits of each?" and "What about an Actuarial Science Major?" thread above.
What is a master's degree in actuarial science? It's a MS degree, but no different from BA/BS equivalent in terms of coursework. It's designed for people switching in from a completely unrelated major. Note that for most/all entry level positions a BA/BS will be sufficient.
Will I benefit from a master's in actuarial science? Some say yes, some say no. It is not required to get a position but some students find that it gives them an opportunity to get an internship with is highly beneficial at landing their first full time role or network with employers. Whether the time and/or tuition cost tradeoff is worth it is a personal decision.
[Table] I am a Senior Lecturer in Actuarial Studies and Statistics who is presenting a free online course "An Introduction to Actuarial Science," starting today. My primary research interests are retirement income policies and higher education as it relates to actuarial science. Ask Me Anything!
Verified?(This bot cannot verify AMAs just yet) Date: 2015-10-16 Link to submission (Has self-text)
The new International Actuarial Association syllabus is a step in the right direction and does indirectly include some computing elements in its data section. Although how you would include computer programming in an exam structure like the Society of Actuaries has I'm not sure.
I do think some computer programming exposure is important - there is really not many actuarial jobs out there now that don't need at least some programming skill. It doesn't have to be in a variety of languages - just one will do. At ANU, we teach both Excel and R within the actuarial degree.
The challenge is that all actuaries think that their material is important to be kept in syllabi, and so updates to syllabi invariably become a case of adding new material rather than a holistic view of what is important for the profession.
I actually think the responsibility for keeping up with modern skill sets rests as much at the continuing professional development level as it does at the formative education level. Yes we should remove the redundant material from the syllabus (commutation functions anyone?), but we cannot expect students to be able to apply the most advanced skills. They are only students! But if we expose students to a variety of different contexts and techniques relevant in those contexts then they will be well placed to learn whatever they need to learn in future.
My view on this might be a little controversial, but I think much of the difficulty in studying actuarial science is in the structure of the qualification system. The multiple-choice exam systems encourage a "surface" rather than "deep" learning approach] ([Link to www.learningandteaching.info) With no real teaching being done, students have to link and contextualise the material themselves, which is asking a lot of young people who may not have the work experience to connect what they are learning to.
Even in Australia, where early actuarial qualification is largely taught through the university system, there is so much content in the accreditation syllabi that we struggle to provide students with any context to what they are learning.
Personally, I think the mathematical concepts in actuarial science would be far easier for students to grasp if they were taught in context.
The new International Actuarial Association syllabus is attempting to address this, although as ever there is a battle with those who want to keep more traditional material.
Interestingly, I think Australia has a slightly different perspective on these issues (see my post on Quantium earlier) - we are seen as being reasonable well advanced on these issues. I think that the issues is partly educational, but perhaps a bigger issue is how we value those who expand knowledge in the profession. We need to ensure that the the actuarial qualification is seen as valuable even to those not working in traditional fields. More broadly I think the profession could either significantly expand or significantly contract in future (I don't see a middle ground). Contraction will occur if we continue to define ourselves by practice area and simply stick to our ever decreasing traditional work areas. Expansion will occur if we define ourselves as what we are - really smart people who are good at solving business problems. If the brand continues to gain traction there is no reason why we couldn't experience the same sort of explosion accounting has in recent decades.
To an extent this depends on the practice area and the specific company. Based on conversations I've had with employers it seems like some of the consulting firms are really on top of this (Quantium in Australia is a firm that is well known for its leadership in this space - it's also the biggest employer of actuarial graduates in Australia I believe) but things are moving slower for internal actuarial teams. Quantium is an interesting case study - they are owned by Woolworths - Australias biggest grocery sellers I believe - and do lots of work on analysing Woolworth's loyalty scheme and the implications of that on Grocery stores. Qantas recently bought an actuarial firm (Taylor Fry) as well to assist in analysing their frequent flyer data.
There is clearly much benefit to general insurance (that's Property & Casualty for you Statesidians) companies of using these techniques, some companies have moved further on this than others.
I think it really depends on what your definition of "actuary" is. The profession is changing a lot at the moment. I suspect that if you were going to work as a traditional "actuary" (life insurance, pensions, etc.) then you probably would end up starting at the bottom. But worldwide, and particularly in Australia, the term "actuary" is becoming more about the person and less about the practice area. Actuaries are being valued for what they contribute to financial services more broadly than just the traditional practice areas. So for someone like you than would mean the actuarial qualification would be more of a "I'm really smart" label that could open doors in non-traditional areas.
Depending on your mathematical proficiency I think you would find the career switch quite doable. The SoA exams (assuming you are from the States) are notoriously difficult early on, but I think that is a function of the lack of real teaching they provide than anything else. They are not so bad for someone with a bit of life experience and maturity.
As for your programming skills, I am really guessing here. I suspect that it could be beneficial to your starting salary in some companies - obviously those that need the programming skills in their actuarial work. However, I think many traditional actuarial firms have quite rigid salary structures that depend more on exams passed than any other experience.
Let's get this thing started! I hope I am doing this right!
At the early stages, the syllabi (if not the pedagogy) are virtually identical. This is because both Australian and the U.S. professions are bound by the International Actuarial Association (IAA) syllabi. The U.S., however, has an internal exam-based system only, whilst in Australia most actuaries do their early study through a university accreditation arrangement.
Later on things get more different (the IAA syllabus covers only to an Associate-level actuary) as each country teaches towards the profession in their own country as well as streaming by practice area in that country.
Whilst I'm not directly involved in this sort of thing, I'm pretty sure that this issue was behind some of the high-profile state pension collapses.
My understanding is that this is because state-based pensions are/were exempt from the accounting rules that required pension liabilities to be discounted at a corporate-bond yield interest rate (irrespective of the assets of the scheme). What this has allowed public schemes to do is essentially book the risk premium from equity investment before it has actually occurred...by using a higher discount rate and thus calculating lower pension liabilities. So these schemes are/were already exaggerating the smallness of their liabilities - come along the GFC and their assets take a significant drop as well.
If I can choose one skill only it would be adaptability. Yes, actuaries have to be bright and mathematically-inclined. But this ability needs to be channeled into a business focus. The best actuaries are those who can use their technical skills but always have the business as their focus. Actuaries need to be able to explain their work to CEOs, CFOs, etc. and so need to understand the technical side of their work so well as to be able to explain it to someone who probably has no idea at all what they are doing but understands the business focus really well.
From a syllabus point of view there's not a huge amount of difference between the universities you mention - we are all bound by our accreditation arrangements with the Actuaries Institute.
Last updated: 2015-10-16 20:23 UTC | Next update: 2015-10-16 20:33 UTC This post was generated by a robot! Send all complaints to epsy.
Now that exam results are out. First off whether you passed or failed take a deep breath, and let go of the result. Now to prepare for the next exam or better prepare for the one just failed! Maybe this might help some of you guys preparing, but below is a link with the available vue spreadsheet functions. I think its wise to become familiar with this to become more efficient with our calculations. Below is a link to the available spreadsheet functions at our disposal, https://home.pearsonvue.com/Clients/Casualty-Actuarial-Society-(CAS)/Spreadsheet-Function-List.aspx/Spreadsheet-Function-List.aspx) Hope this helps
Thoughts on log-transforming most/all continuous predictors in GLMs with log-link...
I am studying for an actuarial exam (Exam 8 with the Casualty Actuarial Society [CAS]) and the syllabus includes a pretty high-level paper on GLMs. Here is the free .pdf: https://www.casact.org/pubs/monographs/papers/05-Goldburd-Khare-Tevet.pdf It contains an interesting section in it related to my title. I'll quote part of it here but you can find it at the link on page 10.
Log Your Continuous Variables! When a log link is used, it is almost always appropriate to take the natural logs of continuous predictors before including them in the model, rather than placing them in the model in their original forms. This allows the scale of the predictors to match the scale of the entity they are linearly predicting, which in the case of a log link is the log of the mean of the outcome.
I thought this was an interesting point that I hadn't really thought to do. I had occasionally logged my continuous predictors in the past, but I never thought that that should be my default choice. I studied statistics in school, so I am familiar with GLMs, it was just interesting to see this kind of blanket statement. I also Googled around to try to find other resources saying the same thing and didn't come up with anything. The authors provide an interesting graphic (Figure 1. pg. 11) showing how variables look after exponentiating them to get the fitted coefficients (actuaries would call these indicated factors) on the scale of the original response variable. This kind of analysis is common for actuaries. I am curious what statisticians think about this. Is it common knowledge and everyone does it? Is it too heavy-handed?
Any interest in an AMA from someone who is a "typical" analyst?
edit: There are some who probably think I am not a great AMA candidate-- which I agree-- I have an extremely limited knowledge of the field and can't offer much other than what I have experienced. It'd be awesome if people with different backgrounds chime in-- different perspectives on the same questions will lead to a better overview for people who are curious. I apologize in advance if my post sounds like I am bragging that I ended with a job-- it wasn't my intention and I probably could've worded myself better. edit2: Well half of the responses have not been very welcoming, so I am fairly convinced that this was a bad idea. I do still think that a group AMA where multiple people with different backgrounds answering the same question offers value (because there are so many individual question threads about the profession from an entry level's perspective) and it makes it easier to answer questions having 1 thread about it. I apologize if I offended anyone with this thread who thought I am trying to gain spotlight (which I unintentionally did, as I realize now). Anyway, if anyone still want to post questions on this thread feel free, and I will check occasionally to see if I can offer my view on things. You can PM me as well but I might not come back to this alt so I apologize in advance if I miss a PM. Otherwise have a good night all- Hello /actuary, I am your typical regular Joe actuarial student/analyst. I will further elaborate on my background below, but in short, I used to be one of the "major changers," whom frequently have questions about the field. I only learned of the actuarial field early in my senior year, and dove into it and hoped for the best. Fortunately, it eventually worked out for me as I found a job approximately one year after graduation. I am writing this post to gauge how much interest there will be for me to host an AMAA. I think the appeal is that I went through what many people are going through or would go through coming out of or at later stages of college and I can relate to those of you who belong in this group. This subreddit has stayed unfortunately rather quiet since I started browsing it 2 years ago, with some complaints about the front page filling up with too many newbie questions, so perhaps something like this can act as another FAQ (even though we already have a good one). I don't plan on making it like an IAMA where I sit for 2-3 hours answering questions (that will be silly given our small number of subscribers here anyway). Instead, it will be more like you can post a question, and I will answer it at my next convenience, but as long as questions keep popping up I will keep coming back. If people like this idea, another idea is to do a multi-background AMAA where several of us with distinctly different backgrounds can answer different questions so more questions can be appropriately answer. Admittedly I have limited knowledge of the field. Some examples of "distinct backgrounds" include actuaries from outside of US or outside of the Northeast region, someone from a separate actuarial society, someone who is further along (fellowship, etc). Some of my background info: -Started studying for exams senior year of college -Hunted for jobs for 1.5 years -Been at current job for 2 years -CAS track (Property & Casualty) -Northeast Region (US) -Finish preliminaries, began sitting for upper level exams I genuinely want to help entry levels prepare for their journey and that's my main goal, so I hope it's understandable that there are some questions I prefer not to answer such as company operation related (I can talk about my general work! just nothing specific about the company) or anything that I feel I can be indentified. While this is a throwaway, I prefer to stay as anonymous as possible because it's a small profession afterall. Perhaps someone else can do a true AMA if needed!
I recently applied to an insurance company and emailed the senior actuary explaining that I passed P and FM and am currently working on studying for MFE and MLC. The senior actuary then emailed me back and told me that their company had no need for life insurance actuaries and to educate myself about the differences between the two fields and let him know if I was interested in pursuing P&C instead. As a recent graduate with no work experience, I have very little knowledge about the specifics of actuarial work. I know CAS is property/casualty insurance whereas SOA is health/life insurance, but beyond that, I don't know what the differences are. The main questions I have are: 1. What are the main differences between the two societies? 2. What are the pros and cons in working in each of the two fields? 3. How would I transfer my exam and VEE credits from SOA to CAS if I decide that I am interested? Any answers are greatly appreciated as well as advice to help me get some work experience.
This is meant to be an FAQ for the Actuarial reddit. It will primarily be geared towards new actuaries, as that's the only experience I currently have two write about. I expect to use it also as a reference for students looking for information on the profession, who contact me from time to time. I will attempt to keep it up to date as information changes. This information will be US-centric as that's where my experience is from. Please add your own FAQs in the comments! Corrections are also welcome! I will edit my post as needed. What do actuaries do? Actuaries started out in life insurance, and have since branched out to many different fields. The traditional tracks for actuaries are life insurance, health insurance, property/casualty insurance (e.g., auto, home, etc.), and retirement. Newer tracks include finance/enterprise risk management and investment. Actuaries typically work either for large insurance providers, investment houses, or for consulting firms. The consulting firms can either be for private employers or for insurance providers. However, there's a whole host of other areas where actuaries have worked their way in ("nontraditional") and used their expertise to enhance the specific niche market they've found. Actuaries basically quantify risk. We work to help businesses understand how much risk they're taking on and how much it costs. Most actuarial work is also done within complex legal and regulatory framework, which must be factored in. It's a complex job involving high levels of quantitative and qualitative skills. Writing abilities are emphasized and required as much as calculation. Actuaries can have full careers being deficient in either, but the best actuaries are well-versed in both. Who licenses actuaries? What makes one an "official" actuary? Actuaries aren't really licensed in the traditional sense of the word. Instead, professional organizations give out designations representing various levels of achievement to candidates. Technically speaking, until one has achieved one of these designations, they are still a "student" actuary. In the US, there are three primary organizations: The Society of Actuaries (SOA), the Casualty Actuarial Society (CAS), and the Joint Board for the Enrollment of Actuaries (JBEA). The SOA gives out three different designations: Associate of the Society of Actuaries (ASA), Chartered Enterprise Risk Analyst (CERA), and Fellow of the Society of Actuaries (FSA). I'll let them explain what they mean. The CAS gives out two different designations: Associate of the Casualty Actuarial Society (ACAS) and Fellow of the Casualty Actuarial Society (FCAS). Again, I'll let them explain the meanings. The JBEA gives out one designation: Enrolled Actuary (EA). This designation qualifies an actuary to be enrolled under the Employee Retirement Income Security Act of 1974 and represent retirement plans in that capacity. It's primarily completed by retirement actuaries, specifically pension actuaries. What about these actuarial exams? The exams start out common between all disciplines, then deviate between the different actuarial organizations and tracks. The first few exams are common to all actuaries in the US:
Exam P/1 - Probability
Exam FM/2 - Financial Mathematics
Exam MLC/3 - Modeling: Life Contingencies
Exam MFE/3F - Modeling: Financial Economics
Exam C/4 - Construction of Actuarial Models
These exams require a thorough understanding of the underlying subject areas as well as college-level mathematics. A thorough understanding of Calculus (read: at least three years) is assumed for all exams. These are all multiple-choice exams, but don't think that makes them easy. Also, there are written examinations at higher levels. Exams are very demanding on an actuary's personal time. Although almost every actuarial firm will provide exam support in the form of paid study time, study materials, and exam fees, significant non-work time is also required. Most employers pay a raise and/or bonus upon successful completion of the exams. These are just the common exams, and they get you most of the way to an ASA/ACAS. Beyond that, they branch out between the different organizations, although these are common to both the CAS and SOA. (The JBEA recognizes FM and MLC.) How do I get started taking an exam? Even though the exams are numbered, you need not take them in that number. You should probably start with P or FM unless you have special experience in one of the other areas. Typically, one would start with P, but FM has less calculus, so some candidates start there. To pass an exam, most candidates use the source text and a study manual. Some also attend online or real-life seminars. The "rule of thumb" for exam study is 100 hours per hour of exam. P and FM are both three hours long, so that implies 300 hours of studying. This is a rule of thumb; many successful candidates study less than that, and I'm sure some unsuccessful ones study more. If you're looking to start taking an exam, recognize this will take good amounts of time on your part. You can find some statistics on pass marks from the SOA. Generally they range from about 50-70% of candidates, depending on the exam. Mind you, these are people who've studied hard; they don't include people who got very low scores. Undergraduate college students: do not expect to walk out of your probability class final and into the exam room and pass without additional effort. Can I be an actuary without a math degree? Yes! The actuarial field welcomes career changers and students of other backgrounds! You just have to pass one or two exams first. Most employers will want to see some level of commitment to the field before they agree to take you in and support you through the exams. Again, recognize that there's a huge time commitment here. What other resources are there for actuaries? It would be a disservice to you if I didn't bring up the highly-useful Actuarial Outpost Discussion Forum (AO). This website is sponsored by D.W. Simpson, an actuarial recruiting firm, and lots of actuaries go there. Everyone from the newest actuarial students to the presidents of the SOA and CAS will post there. Don't abandon /actuary, though!! I'll fill in other important resources as I find/think of them. The links I've provided to the actuarial organizations and the AO are the best I can think of right now. How much do actuaries make? Two recruiting firms, to my knowledge, publish salary data. This is really the best place to get information on how much the actuarial profession pays. Other sources, like the Bureau of Labor Statistic provide some ideas, but they aren't as regimented in their analysis. D.W. Simpson Salary Survey S.C. International Salary Survey What's a recruiter, anyway? Actuaries can be hard to find, and so the market for job transitions isn't transparent or efficient. Some companies use outside firms to help with their actuarial staffing needs. These companies typically pay recruiters some percentage of the initial salary in exchange for finding a good candidate for the company. Personally, I've found that recruiters aren't very interested in helping you unless you've gotten a designation. Then they're way too helpful. Exam Scores - Thanks to r_a_g_s for this writeup This is how it works. First, they figure out what the passing mark should be. It's often around 60%, but it's pretty arcane how they do it. Anyhow, once the passing mark is determined (call it P):
Hi, I am pursuing Actuarials Science in India from Institute & Faculty of Actuaries (IFoA) (UK), having cleared CT-1 and 5. I'm looking for universities abroad to pursue the course. I have several questions of someone can help me out: 1. Is there any University (anywhere in world) that offers a 1-2 year course in Actuarial by doing that gives me exemption of all the 9 CT exams and 2 ST exams from IFoA. 2. If not the above, and other Actuarial society (eg. SOA or Casualty Actuarial Society , etc.) Offer some classroom based course by doing which I can becomes a certified Actuary practitioner (a fellow actuary/practitioner). 3. If i do any of the above will I be able to practice/become a actuary in India. (Get exemptions from Institute of Actuaries of India(IAI)).?
The CAS Institute empowers quantitative professionals in the financial services industry to achieve their goals by providing rigorous credentials and a community of your peers. Our credentials are backed by the experience and power of the Casualty Actuarial Society, whose designations are recognized and trusted by professionals and employers around the world. The Casualty Actuarial Society is a society of actuaries practicing mathematics, finance, economic, insurance, risk management and actuarial science. The Casualty Actuarial Society is a professional organization of actuaries whose purpose is the advancement of the body of knowledge of actuarial science applied to property, casualty, and similar risk exposures. The Casualty Actuarial Society (CAS) is a leading international organization for credentialing and professional education. Founded in 1914, the CAS is the world’s only actuarial organization focused exclusively on property and casualty risks and serves over 8,000 members worldwide. Casualty Actuarial Society. UCAS provides a premiere opportunity for Casualty Actuarial Society members, and others interested in actuarial practice, to receive superior professional education. We also have a number of live virtual seminars listed on our calendar. Casualty Actuarial Society (CAS) Customer service. COVID-19 (Coronavirus) situation: Testing candidates: Check our COVID-19 Update Page to review the health and safety measures in place for testing and find out about any country-specific testing policies. The Casualty Actuarial Society and the Society of Actuaries are American actuarial organizations that standardize and regulate actuaries in the U.S.SOA vs. CAS: The primary difference is that they each support actuaries in different industries. The CAS provides standards and regulations for actuaries that work in property and casualty (P&C) insurance. Casualty Actuarial Society (CAS) - Find your next career at CAS Career Center. Check back frequently as new jobs are posted every day. The Actuarial Standards Board (ASB) sets standards for appropriate actuarial practice in the United States through the development and promulgation of Actuarial Standards of Practice (ASOPs). These ASOPs describe the procedures an actuary should follow when performing actuarial services and identify what the actuary should disclose when Casualty Actuarial Society Online Courses. Learn about specialized education in areas such as predictive analytics, data science and catastrophe model analytics. The Institutes and CAS Partnership. The Institutes and the CAS have partnered to provide online courses for students pursuing the CAS designation. The required courses provide
