All actuarial exams demand a structured and disciplined approach to preparation, but each differs in complexity, focus areas, and depth of knowledge.
Actuaries and aspiring actuaries describe actuarial exams as among the most formidable challenges they face in their career journeys. What are the actuarial exams, and why are they held in such high regard within the profession?
Actuarial exams are rigorous assessments that ensure that professionals entering or progressing in the fieldpossess the necessary knowledge and skills. The actuary exam pass rate, which is 40 to 60%, depending on the exam and period, proves the tests’ difficulty level. Consequently, all takers must be 100% ready.
At Coaching Actuaries, we walk you through all the actuarial exams, explaining the syllabus, test types, and sharing tips on preparing.
SOA Exams
What is the SOA test for? The Society of Actuaries (SOA) tests actuaries pursuing credentials in life insurance, health insurance, pensions, and risk management.
Exam P (Probability)
Exam P evaluates a candidate’s grasp of probability concepts and their applications in actuarial science. One must have a strong foundation in calculus and a solid comprehension of insurance and risk management principles. Exam P includes the following topics:
Probability theory
Random variables
Distributions
Exam FM (Financial Mathematics)
Exam FM puts a candidate’s knowledge of core financial mathematics principles, focusing on applying these concepts to determine the value of different cash flow streams. This exam is essential for valuing loans and bonds, managing assets and liabilities, and assessing investment income.
Exam FAM (Fundamentals of Actuarial Mathematics)
Exam FAM covers the key actuarial methods used in modeling, the core principles of ratemaking, and reserving for short-term coverages. It also tackles the application of contingent payment models to insurance and financial risks.
Exam SRM (Statistics for Risk Modeling)
Your ability to analyze data using various statistical methods and models takes center stage in Exam SRM, which tests you in the following:
- Regression and time series analysis
- Principal components analysis
- Decision trees
- Cluster analysis
- Model selection
- Validation techniques
Exam ASTAM or ALTAM (Advanced Short-Term or Long-Term Actuarial Mathematics)
Exam ASTAM evaluates your proficiency in actuarial modeling methods for short-term coverages, while Exam ALTAM goes for your understanding of contingent payment models and their use in insurance and financial risk management.
Exam PA (Predictive Analytics)
For the application of analytical techniques to solve business problems, Exam PA is a requirement. It consists of two components:
- e-Learning modules that enhance data analysis skills using various models and methods
- A test involving an analysis of a dataset to address a business challenge
CAS Exams
Casualty Actuarial Society (CAS) exams are for actuaries specializing in property and casualty insurance. They verify your expertise in the following areas.
Exams 1 and 2 (Probability and Financial Mathematics)
Exam 1 syllabus covers the following topics:
- General Probability
- Univariate Random Variables
- Multivariate Random Variables
- On the other hand, Exam 2 tests your knowledge of the following:
- Time Value of Money
- Annuities/cash flows with non-contingent payments
- Loans
- Bonds
- General Cash Flows, Portfolios, and Asset Liability Management
Exams MAS I and II (Modern Actuarial Statistics)
Probability models, statistics, and extended linear models are Exam MAS I‘s domains, while Exam MAS IIadds credibility and time series with constant variance to your skill set.
Exam 5 (Basic Techniques for Ratemaking and Estimating Claim Liabilities)
Exam 5 focuses on ratemaking and estimating claim liabilities, requiring candidates to comprehend the subjects’ basics thoroughly. You should also know how to estimate unpaid claims for insurance and non-insurance entities that retain risk.
Exam 6U (Regulation and Financial Reporting)
Exam 6U, which is standardized for Canada, Taipei, the United States, and other international candidates, tackles local laws, regulations, and government programs. It also touches on financial reporting, the actuary’s professional responsibilities, and reinsurance accounting principles.
Exams 7, 8, and 9 (Advanced Estimation of Claims Liabilities, Ratemaking, and Risk Management for Actuaries)
While the above are ACAS (Associate of the Casualty Actuarial Society) requirements, Exams 7, 8, and 9 are for FCAS (Fellow of the Casualty Actuarial Society). Exam 7 is for estimating claims liabilities, and Exam 8 is for classification ratemaking and excess, deductible, and individual risk rating. Lastly, Exam 9 has the following domains:
- Catastrophe and Reinsurance
- Risk and Return
- Financial Risk Management (FRM)
- Enterprise Risk Management (ERM)
Coaching Actuaries for Actuarial Exam Preparation
All actuarial exams demand a structured and disciplined approach to preparation, but each differs in complexity, focus areas, and depth of knowledge.
While core study techniques remain the same, the right instruction and resources can significantly increase your chances of success. At Coaching Actuaries, we help you do the following:
Personalize Preparation Schedule
We acknowledge your unique learning style and pace, background, and available study time. Our personalized study schedules allocate sufficient time to each subject, keeping you on track while preventing burnout.
Explore Syllabi and Use Various Study Materials
We rely on the official exam syllabi and provide high-quality study materials. You get a well-rounded grasp of key concepts from textbooks, online resources, video lectures, and interactive tools.
Take Practice and Mock Exams
Coaching Actuaries has extensive question banks, practice problems, and full-length mock exams that simulate actual exam conditions. Let us identify weak areas, improve time management, and build confidence.
Study With Other Aspiring Actuaries
Connect with peers, join study groups, and participate in discussion forums! Engaging with others allows for knowledge-sharing, motivation, and collaborative learning.
Get Expert Guidance
Our experienced actuarial professionals provide valuable insights, answer complex questions, and offer practical tips to enhance problem-solving skills. Personalized coaching ensures you receive the support you need before and even after taking the exams.
Find Your Actuarial Course Now
Whether you’re contemplating your first actuarial exam or are well into the series, Coaching Actuaries is eager to be your partner in your preparation. Be confident to take the next step in your actuarial career! Find your course today or contact us to learn more about our programs and services.