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{{Short description|Credentialing process for acturial science}}

{{see also|Category:Actuarial associations}}
{{see also|Category:Actuarial associations}}
The '''actuarial credentialing and exam''' process usually requires passing a rigorous series of professional examinations, most often taking several years in total, before one can become recognized as a credentialed [[actuary]]. In some countries, such as Denmark, most study takes place in a university setting. In others, such as the U.S., most study takes place during employment through a series of examinations. In the UK, and countries based on its process, there is a hybrid university-exam structure.
The '''actuarial credentialing and exam''' process usually requires passing a rigorous series of professional examinations, most often taking several years in total, before one can become recognized as a credentialed [[actuary]]. In some countries, such as Denmark, most study takes place in a university setting. In others, such as the U.S., most study takes place during employment through a series of examinations. In the UK, and countries based on its process, there is a hybrid university-exam structure.


==Australia==
==Policies of various countries==

===Australia===
The education system in Australia is divided into three components: an exam-based curriculum; a professionalism course; and work experience.<ref name="auto1">{{harv|IAA-Ed|2021}}</ref> The system is governed by the [[Institute of Actuaries of Australia]].<ref>{{harv|IAA-About|2021}}</ref>
The education system in Australia is divided into three components: an exam-based curriculum; a professionalism course; and work experience.<ref name="auto1">{{harv|IAA-Ed|2021}}</ref> The system is governed by the [[Institute of Actuaries of Australia]].<ref>{{harv|IAA-About|2021}}</ref>


The exam-based curriculum is in three parts. Part I relies on exemptions from an accredited under-graduate degree from either [[Monash University]], [[Macquarie University]], [[University of New South Wales]], [[University of Melbourne]], [[Australian National University]] or [[Curtin University]].<ref name="auto">{{harv|IAA-Part I|2006}}</ref> The courses cover subjects including finance, financial mathematics, economics, contingencies, demography, models, probability and statistics. Students may also gain exemptions by passing the exams of the [[Institute of Actuaries]] in London.<ref name="auto"/> Part II is the [[Actuarial control cycle]] and is also offered by each of the universities above.<ref>{{harv|IAA-Part II|2006}}</ref> Part III consists of four half-year courses of which two are compulsory and the other two allow specialization.<ref>{{harv|IAA-Part III|2006}}</ref>
The exam-based curriculum is in three parts. Part I relies on exemptions from an accredited under-graduate degree from either [[Bond University]], [[Monash University]], [[Macquarie University]], [[University of New South Wales]], [[University of Melbourne]], [[Australian National University]] or [[Curtin University]].<ref name="auto">{{harv|IAA-Part I|2006}}</ref> The courses cover subjects including finance, financial mathematics, economics, contingencies, demography, models, probability and statistics. Students may also gain exemptions by passing the exams of the [[Institute of Actuaries]] in London.<ref name="auto"/> Part II is the [[Actuarial control cycle]] and is also offered by each of the universities above.<ref>{{harv|IAA-Part II|2006}}</ref> Part III consists of four half-year courses of which two are compulsory and the other two allow specialization.<ref>{{harv|IAA-Part III|2006}}</ref>


To become an Associate, one needs to complete Part I and Part II of the accreditation process, perform 3 years of recognized work experience, and complete a professionalism course.<ref name="auto1"/> To become a Fellow, candidates must complete Part I, II, III, and take a professionalism course. Work experience is not required, however, as the Institute deems that those who have successfully completed Part III have shown enough level of professionalism.<ref name="auto1"/>
To become an Associate, one needs to complete Part I and Part II of the accreditation process, perform 3 years of recognized work experience, and complete a professionalism course.<ref name="auto1"/> To become a Fellow, candidates must complete Part I, II, III, and take a professionalism course. Work experience is not required, however, as the Institute deems that those who have successfully completed Part III have shown enough level of professionalism.<ref name="auto1"/>


===Canada===
==China==
In [[China]], both [[China Association of Actuaries]] (CAA) and [[Actuarial Society of Hong Kong]] (ASHK) have their own associate-ship and fellowship credentialing processes. The CAA holds its own system of examinations, while ASHK holds only examination of "Certificate in [[Hong Kong]] Insurance Markets and Regulations" (ASHK Certificate). Note that CAA exams were suspended in 2014 but reintroduced in 2023 in an updated structure.<ref>{{cite news |title=China Brings Back Insurance Actuary Qualifying Exams After Nine-Year Hiatus |url=https://www.yicaiglobal.com/news/china-brings-back-insurance-actuary-qualification-after-nine-year-hiatus |access-date=5 September 2023 |work=www.yicaiglobal.com |language=en}}</ref>
The [[Canadian Institute of Actuaries]] (the CIA) recognizes fellows of both the Society of Actuaries and the Casualty Actuary Society, provided that they have specialized study in Canadian actuarial practice. For fellows of the SOA, this is fulfilled by taking the CIA’s Practice Education Course (PEC). For fellows of the Casualty Actuarial Society, this is fulfilled by taking the nation-specific Exam 6-Canada, instead of Exam 6-United States.<ref>{{harv|CAS|2011b}}</ref> Further, the CIA requires three years of actuarial practice within the previous decade, and 18 months of Canadian actuarial practice within the last three years, to become a fellow.<ref>{{harv|CIA|2004}}</ref>


To achieve associate-ship, the CAA requires examination with 5 subjects: (1) probability and mathematical statistics, (2) finance and economics, (3) actuarial mathematics, (4) actuarial models and data analytics, (5) actuarial risk management; while ASHK recognizes associate-ship credentials from [[Society of Actuaries]] (SOA), [[Casualty Actuarial Society]] (CAS), [[Institute and Faculty of Actuaries]] (IFoA), and [[Institute of Actuaries of Australia]] (IAA).<ref>[http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1117738&itemId=928]</ref>
===Denmark===

To achieve fellowship, the CAA offers 7 tracks: (1) life insurance, (2) non-life insurance, (3) health insurance, (4) social insurance and pension planning, (5) [[financial risk]] management, (6) asset management, and (7) data science, each requires examination with another 5 subjects; while ASHK requires fellowship credentials from either of the 4 organizations above and passing the ASHK Certificate examination. <ref>[https://www.actuaries.org.hk/pages/9/Actuarial%20Education%20&%20Certification/17/ASHK%20Certificate/1/Overview ASHK Certificate Overview]</ref>

==Denmark==
In Denmark it normally takes five years of study at the [[University of Copenhagen]] to become an actuary with no professional experience requirement. There is a focus on [[statistics]] and [[probability theory]], and a requirement for a [[Master's degree|master's]] [[thesis]].<ref>{{harv|Norberg|1990}}</ref> By Danish law, responsibility for the practice of any life insurance business must be taken by a formally acknowledged and approved actuary. Approval as a formally responsible actuary requires three to five years of professional experience.{{harv|Haastrup|Nielsen|2007}}
In Denmark it normally takes five years of study at the [[University of Copenhagen]] to become an actuary with no professional experience requirement. There is a focus on [[statistics]] and [[probability theory]], and a requirement for a [[Master's degree|master's]] [[thesis]].<ref>{{harv|Norberg|1990}}</ref> By Danish law, responsibility for the practice of any life insurance business must be taken by a formally acknowledged and approved actuary. Approval as a formally responsible actuary requires three to five years of professional experience.{{harv|Haastrup|Nielsen|2007}}


===Germany===
==Germany==
Current rules for the [[German Actuarial Society]] require an actuary to pass more than 13 exams.<ref>{{harv|DAV|2011}}</ref>
Current rules for the [[German Actuarial Society]] require an actuary to pass more than 13 exams.<ref>{{harv|DAV|2011}}</ref>


===India===
==India==
The [[Actuarial Society of India]] (now converted into Institute of Actuaries of India) offers both associate-ship and fellowship classes of membership. However, prospective candidates must be admitted to the society as students before they achieve associate-ship or fellowship. The exam sequence is similar to the British model, with Core and Specialty technical and application exams. The exams are conducted twice a year during the months of May–June and October–November.<ref>{{harv|ASI|2006}}</ref> Starting from January 2012, the institute has started conducting entrance exam. Only those applicants who clear the entrance test can appear for the Core Technical papers.
The [[Institute of Actuaries of India]] (formerly Actuarial Society of India) offers both associate-ship and fellowship classes of membership. However, prospective candidates must be admitted to the society as students before they achieve associate-ship or fellowship. The exam sequence is similar to the British model, with Core and Specialty technical and application exams. The exams are conducted twice a year during the months of May–June and October–November.<ref>{{harv|ASI|2006}}</ref> Starting from January 2012, the institute has started conducting entrance exam. Only those applicants who clear the entrance test can appear for the Core Technical papers.

==Japan==
The education system in [[Japan]] is administrated by [[Institute of Actuaries of Japan]] (IAJ), with associateship and fellowship credential levels.<ref>[https://www.actuaries.jp/english/ Institute of Actuaries of Japan]</ref>

The IAJ's requirement for associateship include passing the primary examination with 5 basic subjects: (1) mathematics, (2) life insurance mathematics, (3) non-life insurance mathematics, (4) pension mathematics, (5) accounting, economics and investment theory. <ref>[https://www.actuaries.jp/english/info/examination.html How to Become an Actuary]</ref>

The IAJ offers 3 tracks for fellowship: life insurance, non-life insurance, and pension. Each requires passing the secondary examination with 2 advanced subjects.


===Norway===
==Norway==
In [[Norway]] the education to become an actuary takes five years. The education usually consists of a bachelor's degree (three years) and a master's degree (two years). The bachelor's degree needs to contain a specific number of courses in mathematics and statistics. The master's degree usually consists of one year of courses and one year writing a master's degree about a topic related to the actuarial profession. [[University of Bergen|The University of Bergen]] and [[University of Oslo|The University of Oslo]] offer the education to become an actuary in [[Norway]].<ref>{{harv|University of Bergen|2011}}</ref>
In [[Norway]] the education to become an actuary takes five years. The education usually consists of a bachelor's degree (three years) and a master's degree (two years). The bachelor's degree needs to contain a specific number of courses in mathematics and statistics. The master's degree usually consists of one year of courses and one year writing a master's degree about a topic related to the actuarial profession. [[University of Bergen|The University of Bergen]] and [[University of Oslo|The University of Oslo]] offer the education to become an actuary in [[Norway]].<ref>{{harv|University of Bergen|2011}}</ref>
To become an international qualified actuary, a person with a Norwegian actuarial education must also take two courses in economics (macroeconomics and accounting) and a course in ethics. The ethics course, which lasts a day, is offered by the [[Norwegian Society of Actuaries]].<ref>{{harv|Norwegian Society of Actuaries|2011}}</ref>
To become an international qualified actuary, a person with a Norwegian actuarial education must also take two courses in economics (macroeconomics and accounting) and a course in ethics. The ethics course, which lasts a day, is offered by the [[Norwegian Society of Actuaries]].<ref>{{harv|Norwegian Society of Actuaries|2011}}</ref>


===South Africa===
==South Africa==
Actuaries in South Africa are served by the [[Actuarial Society of South Africa]] (ASSA). Until recently{{when|date=May 2020}} <!-- 2010? --> the requirement to qualify as an actuary in South Africa was to pass the exams hosted by the UK bodies. Starting in 2010, a South African actuarial qualification hosted by ASSA has replaced this arrangement. Key changes include exam syllabuses based on South African-specific content. The UK actuarial professional bodies, however, still support qualification through the UK. Students may receive exemption from part of the examinations for qualification from approved universities. The South African qualification does have mutual recognition with many of the international actuarial bodies as well as approval of the syllabus from the International Actuarial Association.
Actuaries in South Africa are served by the [[Actuarial Society of South Africa]] (ASSA). Until 2010, the requirement to qualify as an actuary in South Africa was to pass the exams hosted by the UK bodies. Starting in 2010, a South African actuarial qualification hosted by ASSA has replaced this arrangement. Key changes include exam syllabuses based on South African-specific content. The UK actuarial professional bodies, however, still support qualification through the UK. Students may receive exemption from part of the examinations for qualification from approved universities. The South African qualification does have mutual recognition with many of the international actuarial bodies as well as approval of the syllabus from the International Actuarial Association.


One may obtain the Chartered Enterprise Risk Actuary (CERA) designation through the ASSA.
One may obtain the [[Chartered Enterprise Risk Actuary]] (CERA) designation through the ASSA.


South Africa pioneered the actuarial banking route, with fellowship exams (equivalent to the UK's SA exams) in banking beginning in the late 2010s.
===Sweden===

==Sweden==
Actuarial training in [[Sweden]] takes place at [[Stockholm University]]. The five-year [[Master's degree|master's]] program (for those with no previous university-level knowledge in mathematics, or without a bachelor's degree in mathematics) covers the subjects [[mathematics]], [[statistics|mathematical statistics]], [[actuarial science|insurance mathematics]], [[Mathematical finance|financial mathematics]], [[insurance law]] and insurance [[economics]]. The program operates under the Division of Mathematical Statistics.<ref>{{harv|Stockholm University|2006}}</ref>
Actuarial training in [[Sweden]] takes place at [[Stockholm University]]. The five-year [[Master's degree|master's]] program (for those with no previous university-level knowledge in mathematics, or without a bachelor's degree in mathematics) covers the subjects [[mathematics]], [[statistics|mathematical statistics]], [[actuarial science|insurance mathematics]], [[Mathematical finance|financial mathematics]], [[insurance law]] and insurance [[economics]]. The program operates under the Division of Mathematical Statistics.<ref>{{harv|Stockholm University|2006}}</ref>


==Taiwan==
===UK and Ireland===
Qualification in [[Taiwan]] is administrated by [[Actuarial Institute of the Republic of China (Taiwan)]] (AIRC/AICT), with associateship and fellowship credential levels.<ref>[http://www.airc.org.tw/ Actuarial Institute of the Republic of China (Taiwan)]</ref>
Qualification in the [[United Kingdom]] and [[Republic of Ireland|Ireland]] consists of a combination of exams and courses provided by the [[Institute and Faculty of Actuaries]]. The exams may only be taken upon having officially joined the body,<ref>{{Cite web|title=How to Register Student|url=http://www.actuaries.org.uk/students/pages/how-register-student|url-status=live|access-date=2022-01-20|website=www.actuaries.org.uk}}</ref> unlike many other countries where exams may be taken earlier. Most trainee actuaries study while working for an actuarial employer using resources provided by ActEd (The Actuarial Education Company, a subsidiary of BPP Actuarial Education Ltd.), which is contracted to provide actuarial tuition for students on behalf of Institute and Faculty Education Ltd (IFE), a subsidiary of the Institute and Faculty of Actuaries.<ref>{{Cite web |url=http://www.actuaries.org.uk/students/pages/exam-preparation |title=Archived copy |access-date=2013-12-31 |archive-url=https://web.archive.org/web/20121106021001/http://www.actuaries.org.uk/students/pages/exam-preparation |archive-date=2012-11-06 |url-status=dead }}</ref>


The AIRC/AICT offers 3 tracks for its membership: life insurance, general insurance, and pension. Although with own design of education system, the AIRC/AICT practically only holds exams testing knowledge specifically to [[Taiwan]] and mainly recognizes examination credits from [[Society of Actuaries]] (SOA), [[Casualty Actuarial Society]] (CAS), [[Institute and Faculty of Actuaries]] (IFoA), [[Institute of Actuaries of Australia]] (IAA), and [[Institute of Actuaries of Japan]] (IAJ). The associateship and fellowship credentials from these organizations are also recognized.<ref>[http://www.airc.org.tw/re/files/Be%20an%20Actuary-20230810.pdf How to Become an Actuary (AIRC)]</ref> The AIRC/AICT has coordinated with SOA and CAS to integrate the Taiwanese exams into their education systems (SOA Regulation and Taxation Module<ref>[https://www.soa.org/education/exam-req/edu-module-reg-detail Regulation and Taxation Module]</ref> and CAS Exam 6T<ref>[https://www.casact.org/exam/exam-6t-regulation-and-financial-reportingtaipei Exam 6T]</ref>).
However, a candidate may offer proof of having previously covered topics (at a high enough standard, usually while at university) to be exempt from taking certain subjects.<ref>{{Cite web |url=http://www.actuaries.org.uk/students/pages/frequently-asked-questions-exemptions |title=Archived copy |access-date=2013-12-31 |archive-url=https://web.archive.org/web/20130305040931/http://www.actuaries.org.uk/students/pages/frequently-asked-questions-exemptions |archive-date=2013-03-05 |url-status=dead }}</ref>


== United Kingdom and Ireland ==
The exams themselves are split into four sections:<ref>{{Cite web|title=Our Exams Explained|url=http://www.actuaries.org.uk/students/pages/our-exams-explained|url-status=live|access-date=2022-01-20|website=www.actuaries.org.uk}}</ref> Core Principles (CP), Core Practices (CP), Specialists Principles (SP), and Specialist Advance (SA). For students who joined the Profession after June 2004, a further requirement that the student carry out a "Work-based skills" exercise has been brought into effect. This involves the student submitting a series of essays to the Profession detailing the work that he or she has performed. In addition to exams, essays and courses, it is required that the candidate have at least three years' experience of actuarial work under supervision of a recognized actuary to qualify as a Fellow of the Institute of Actuaries (FIA) or of the Faculty of Actuaries (FFA).<ref>{{harv|Institute and Faculty of Actuaries|2011a}}</ref>
{{main|Institute and Faculty of Actuaries|Society of Actuaries in Ireland}}
Qualification in the [[United Kingdom]] and [[Republic of Ireland|Ireland]] consists of a combination of exams and courses provided by the [[Institute and Faculty of Actuaries]]. The exams may only be taken upon having officially joined the body,<ref>{{Cite web|title=How to Register Student|url=http://www.actuaries.org.uk/students/pages/how-register-student|access-date=2022-01-20|website=www.actuaries.org.uk}}</ref> unlike many other countries where exams may be taken earlier. Most trainee actuaries study while working for an actuarial employer using resources provided by ActEd (The Actuarial Education Company, a subsidiary of BPP Actuarial Education Ltd.), which is contracted to provide actuarial tuition for students on behalf of Institute and Faculty Education Ltd (IFE), a subsidiary of the Institute and Faculty of Actuaries.<ref>{{Cite web |url=http://www.actuaries.org.uk/students/pages/exam-preparation |title=Exam preparation &#124; the Actuarial Profession |access-date=2013-12-31 |archive-url=https://web.archive.org/web/20121106021001/http://www.actuaries.org.uk/students/pages/exam-preparation |archive-date=2012-11-06 |url-status=dead }}</ref>


However, a candidate may offer proof of having previously covered topics (at a high enough standard, usually while at university) to be exempt from taking certain subjects.<ref>{{Cite web |url=http://www.actuaries.org.uk/students/pages/frequently-asked-questions-exemptions |title=Frequently asked questions on exemptions &#124; the Actuarial Profession |access-date=2013-12-31 |archive-url=https://web.archive.org/web/20130305040931/http://www.actuaries.org.uk/students/pages/frequently-asked-questions-exemptions |archive-date=2013-03-05 |url-status=dead }}</ref>
Note that the UK Profession is currently introducing the Certified Actuarial Analyst (CAA) qualification to "provide those working in financial and actuarial roles at a technical level around the world with valuable skills and a well respected qualification".<ref>{{Cite web|title=New qualification takes a step forward|url=http://www.actuaries.org.uk/news/articles/new-qualification-takes-step-forward|url-status=live|access-date=2022-01-20|website=www.actuaries.org.uk}}</ref>


The exams themselves are split into four sections:<ref>{{Cite web|title=Our Exams Explained|url=http://www.actuaries.org.uk/students/pages/our-exams-explained|access-date=2022-01-20|website=www.actuaries.org.uk}}</ref> Core Principles (CP), Core Practices (CP), Specialists Principles (SP), and Specialist Advance (SA). For students who joined the Profession after June 2004, a further requirement that the student carry out a "Work-based skills" exercise has been brought into effect. This involves the student submitting a series of essays to the Profession detailing the work that he or she has performed. In addition to exams, essays and courses, it is required that the candidate have at least three years' experience of actuarial work under supervision of a recognized actuary to qualify as a Fellow of the Institute of Actuaries (FIA) or of the Faculty of Actuaries (FFA).<ref>{{harv|Institute and Faculty of Actuaries|2011a}}</ref>
===United States===
In the U.S., for life, health, and pension actuaries, exams are given by the [[Society of Actuaries]], while for property-casualty actuaries the exams are administered by the [[Casualty Actuarial Society]]. The Society of Actuaries’ requirements for Associateship include passing five preliminary examinations, demonstrating educational experience in [[economics]], [[corporate finance]], and [[applied statistics]]—called validation by educational experience (VEE), completing an eight-module self-learning series, and taking a course on professionalism.<ref>{{harv|SOA|2012a}}</ref> For Fellowship, three other modules, three or four exams depending on specialty track, and a special fellowship admission course is added.<ref>{{harv|SOA|2012c}}</ref> The Casualty Actuarial Society requires the successful completion of seven examinations, two modules, and economics and corporate finance VEEs for Associateship and three additional exams for Fellowship. In addition to these requirements, casualty actuarial candidates must also complete professionalism education and be recommended for membership by existing members.<ref>{{harv|CAS|2011a}}</ref>


{|class=wikitable style="text-align:center;"
To sign certain statements of actuarial opinion, however, American actuaries must be members of the [[American Academy of Actuaries]]. Academy membership requirements include membership in one of the recognized actuarial societies, at least three years of full-time equivalent experience in responsible actuarial work, and either residency in the United States for at least three years or a non-resident or new resident who meets certain requirements.<ref>{{harv|AAA|2010}}</ref> Continuing education is required after certification for all actuaries who sign statements of actuarial opinion.<ref>{{harv|AAA|2008}}</ref>
!Exam code!!Exam title!!Format
|-
|'''CM1'''||align=left|Actuarial Mathematics||Session based exam
|-
|'''CM2'''||align=left|Financial Engineering and Loss Reserving||Session based exam
|-
|'''CS1'''||align=left|Actuarial Statistics||Session based exam
|-
|'''CS2'''||align=left|Risk Modelling and Survival Analysis||Session based exam
|-
|'''CB1'''||align=left|Business Finance||Session based exam
|-
|'''CB2'''||align=left|Business Economics||Session based exam
|-
|'''CB3'''||align=left|Business Management||Online exam
|-
|'''CP1'''||align=left|Actuarial Practice||Session based exam
|-
|'''CP2'''||align=left|Modelling Practice||Online exam
|-
|'''CP3'''||align=left|Communications Practice||Online exam
|}


Note that the UK Profession is currently introducing the Certified Actuarial Analyst (CAA) qualification to "provide those working in financial and actuarial roles at a technical level around the world with valuable skills and a well respected qualification".<ref>{{Cite web|title=New qualification takes a step forward|url=http://www.actuaries.org.uk/news/articles/new-qualification-takes-step-forward|access-date=2022-01-20|website=www.actuaries.org.uk}}</ref>
====Preliminary exams====
Dependent on which society a student chooses to pursue, there are anywhere from six to seven preliminary exams. Most of the exams are multiple choice and administered on computers at [[Prometric]] testing centers. Candidates are allowed to use a calculator from an approved list.<ref>{{Cite web |url=http://www.beanactuary.com/exams/rules/?fa=identification-and-calculators#calculator |title=Archived copy |access-date=2016-06-18 |archive-date=2013-09-25 |archive-url=https://web.archive.org/web/20130925202820/http://www.beanactuary.com/exams/rules/?fa=identification-and-calculators#calculator |url-status=dead }}</ref> The exams are timed and last between three and four hours. Some tests provide instant feedback as to whether or not a candidate has passed that particular exam (see table below). All test scores (on a 0-10 scale with 6 or higher passing) are posted six to eight weeks after the test. However, due to the way the test is scaled, the scores can range from 0-10, but there are also situations where the highest grade for a test is a 9 even if every single question was answered correctly. This is because the interval is 10 percent of the score required to pass,<ref>{{Cite web|title=Grading - Reporting of Examination Results {{!}} SOA|url=https://www.soa.org/education/general-info/grading/edu-reporting-results.aspx|access-date=2021-12-01|website=www.soa.org}}</ref> which means the following:<ref>{{Cite web|title=school_and_exam_questions - actuary|url=https://libreddit.spike.codes/r/actuary/wiki/school_and_exam_questions|access-date=2021-12-01|website=libreddit.spike.codes}}</ref>


== United States and Canada ==
Let P be the passing percentage.
=== Credentialing organizations ===
{{main|Society of Actuaries|Casualty Actuarial Society}}
{{main|American Academy of Actuaries|Canadian Institute of Actuaries}}
In the U.S., for life, health, and pension actuaries, exams are given by the [[Society of Actuaries]], while for property-casualty actuaries the exams are administered by the [[Casualty Actuarial Society]].


To sign certain statements of actuarial opinion, however, American actuaries must be members of the [[American Academy of Actuaries]]. Academy membership requirements include membership in one of the recognized actuarial societies, at least three years of full-time equivalent experience in responsible actuarial work, and either residency in the United States for at least three years or a non-resident or new resident who meets certain requirements.<ref>{{harv|AAA|2010}}</ref> Continuing education is required after certification for all actuaries who sign statements of actuarial opinion.<ref>{{harv|AAA|2008}}</ref>
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;


The [[Canadian Institute of Actuaries]] (the CIA) recognizes fellows of both the Society of Actuaries and the Casualty Actuary Society, provided that they have specialized study in Canadian actuarial practice. For fellows of the SOA, this is fulfilled by taking the CIA's Practice Education Course (PEC). For fellows of the Casualty Actuarial Society, this is fulfilled by taking the nation-specific Exam 6-Canada, instead of Exam 6-United States.<ref>{{harv|CAS|2011b}}</ref> Further, the CIA requires three years of actuarial practice within the previous decade, and 18 months of Canadian actuarial practice within the last three years, to become a fellow.<ref>{{harv|CIA|2004}}</ref>
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.


=== Education and exams ===
The Society of Actuaries' requirements for Associateship (ASA) include passing 6 preliminary examinations ([[probability]], financial mathematics, fundamentals of actuarial mathematics, [[Statistical model|statistics for risk modeling]], [[predictive analytics]], and one from either advanced long-term actuarial mathematics or advanced short-term actuarial mathematics), validating educational experience (VEE) in 3 fields ([[economics]], [[accounting]] and [[finance]], and [[mathematical statistics]]), completing self-learning series and passing their assessments (advanced topics in predictive analytics, five-module fundamentals of actuarial practice), and taking a course on professionalism.<ref>{{harv|SOA|2012a}}</ref> For Fellowship (FSA), three other modules, three or four exams depending on specialty track, and a special fellowship admission course is added.<ref>{{harv|SOA|2012c}}</ref> The Casualty Actuarial Society requires the successful completion of seven examinations, two modules, and economics and corporate finance VEEs for Associateship and three additional exams for Fellowship. In addition to these requirements, casualty actuarial candidates must also complete professionalism education and be recommended for membership by existing members.<ref>{{harv|CAS|2011a}}</ref>

Dependent on which society a student chooses to pursue, there are anywhere from six to seven preliminary exams. Most of the exams are multiple choice and administered on computers at [[Prometric]] testing centers. Candidates are allowed to use a calculator from an approved list.<ref>{{Cite web |url=http://www.beanactuary.com/exams/rules/?fa=identification-and-calculators#calculator |title=Identification and Calculators &#124; be an Actuary |access-date=2016-06-18 |archive-date=2013-09-25 |archive-url=https://web.archive.org/web/20130925202820/http://www.beanactuary.com/exams/rules/?fa=identification-and-calculators#calculator |url-status=dead }}</ref> The exams are timed and last between three and four hours. Some tests provide instant feedback as to whether or not a candidate has passed that particular exam (see table below). All test scores (on a 0-10 scale with 6 or higher passing) are posted six to eight weeks after the test. However, due to the way the test is scaled, the scores can range from 0–10, but there are also situations where the highest grade for a test is a 9 even if every single question was answered correctly. This is because the interval is 10 percent of the score required to pass,<ref>{{Cite web|title=Grading - Reporting of Examination Results {{!}} SOA|url=https://www.soa.org/education/general-info/grading/edu-reporting-results.aspx|access-date=2021-12-01|website=www.soa.org}}</ref> which means the following:<ref>{{Cite web|title=school_and_exam_questions - actuary|url=https://libreddit.spike.codes/r/actuary/wiki/school_and_exam_questions|access-date=2021-12-01|website=libreddit.spike.codes}}</ref>

Let P be the passing percentage, the transcript will show.
{|class=wikitable style="text-align:center;"
!Range
|<0.5P||0.5P–0.6P||0.6P–0.7P||0.7P–0.8P||0.8P–0.9P||0.9P–P
|P–1.1P||1.1P–1.2P||1.2P–1.3P||1.3P–1.4P||>1.4P
|-
!Score
|'''0'''||'''1'''||'''2'''||'''3'''||'''4'''||'''5'''||'''6'''||'''7'''||'''8'''||'''9'''||'''10'''
|-
!Result
|colspan=6|'''Fail'''||colspan=5|'''Pass'''
|}
If <math>P>\frac{100}{1.4}\% \approx 71.4\%</math>, then <math>1.4P > 100\%</math>, i.e. the requirement for the percentage of score to get grade 10 will be higher than <math>100\%</math>. That is, grade 10 is unachievable. Hence, the highest grade achievable can be 9 for a test.
If <math>P>\frac{100}{1.4}\% \approx 71.4\%</math>, then <math>1.4P > 100\%</math>, i.e. the requirement for the percentage of score to get grade 10 will be higher than <math>100\%</math>. That is, grade 10 is unachievable. Hence, the highest grade achievable can be 9 for a test.


SOA administers exam LTAM (previously MLC), which covers life contingencies topics. Starting in May 2014, MLC includes both multiple choice and open-response questions. SOA made this change because, in their view, strict multiple-choice questions are not sufficient or adequate to test whether candidates are familiar and fluent in the material. The test is four hours long, allows calculators, and is administered via a paper-and-pencil format. Multiple-choice questions account for 40% of the exam, and open-response questions account for 60% of the exam. Candidates may freely move between the two sections. The two sections are graded separately. However, since the multiple-choice questions are easier, only candidates who have answered a certain percentage of the multiple-choice questions correctly have their written answers graded. For instance, a multiple-choice score of 24 points was needed to have written-answer questions graded for the April 2021 LTAM exam.<ref>{{Cite web|title=APRIL 2021 EXAMINATION RESULTS|url=https://www.soa.org/globalassets/assets/files/exam-results/edu-2021-04-ltam-percents-xstyui.pdf|url-status=live}}</ref>
SOA administers exam LTAM (previously MLC), which covers life contingencies topics. Starting in May 2014, MLC includes both multiple choice and open-response questions. SOA made this change because, in their view, strict multiple-choice questions are not sufficient or adequate to test whether candidates are familiar with and fluent in the material. The test is four hours long, allows calculators, and is administered via a paper-and-pencil format. Multiple-choice questions account for 40% of the exam, and open-response questions account for 60% of the exam. Candidates may freely move between the two sections. The two sections are graded separately. However, since the multiple-choice questions are easier, only candidates who have answered a certain percentage of the multiple-choice questions correctly have their written answers graded. For instance, a multiple-choice score of 24 points was needed to have written-answer questions graded for the April 2021 LTAM exam.<ref>{{Cite web|title=APRIL 2021 EXAMINATION RESULTS|url=https://www.soa.org/globalassets/assets/files/exam-results/edu-2021-04-ltam-percents-xstyui.pdf}}</ref>


{| class="sortable wikitable"
{|class=wikitable style="text-align:center;font-size:small"
|+[[Society of Actuaries]] (SOA) Exams
!Exam code!!Exam title!!Introduced!!Preceded by!!Ceased!!Superseded by
|-
|-
|'''P'''||align=left|Probability||2005||align=left|Course 1
! SOA exam || CAS exam || Exam title || Exam topics || Format || Tests per year || Pass/fail estimate
|colspan=2 {{n/a|Current exam}}
|-
|-
|'''FM'''||align=left|Financial Mathematics||2005||align=left|Course 2
| align="center"| P || align="center"| 1 || align="center"| Probability || Law of total probability, Bayes' theorem, basic counting, common discrete and continuous distributions, univariate and multivariate distributions, order statistics, transformation of distributions, conditional expectation, variance and covariance, basic knowledge of insurance and risk management || align="center"| Computer || align="center"| 6 || align="center"| Yes
|colspan=2 {{n/a|Current exam}}
|-
|-
|'''FAM'''||align=left|Fundamentals of Actuarial Mathematics||2023||align=left|Part of exams LTAM and STAM
| align="center"| FM || align="center"| 2 || align="center"| Financial Mathematics || Basic interest theory, annuities, bonds, loans, cash flows, portfolios, determinants of interest rates, interest rate swaps, spot rates, forward rates and immunization || align="center"| Computer || align="center"| 6 || align="center"| Yes
|colspan=2 {{n/a|Current exam}}
|-
|-
|'''SRM'''||align=left|Statistics for Risk Modeling||2018||align=left|''None''
| align="center"| IFM || align="center"| 3F || align="center"| Investment and Financial Markets || Interest rate models, derivatives, hedging, options, capital structure, debt and equity financing, rational valuation of derivative securities, and risk management techniques || align="center"| Computer || align="center"| 3 || align="center"| Yes
|colspan=2 {{n/a|Current exam}}
|-
|-
|'''ALTAM'''||align=left|Advanced Long-Term Actuarial Mathematics||2023||align=left|Part of exam LTAM
| align="center"| LTAM || align="center"| -- || align="center"| Long-Term Actuarial Mathematics || Survival models, Markov chain models, life insurances and annuities, pension mathematics, and mortality improvement|| align="center"| Paper and pencil || align="center"| 2 || align="center"| No
|colspan=2 {{n/a|Current exam}}
|-
|-
|'''ASTAM'''||align=left|Advanced Short-Term Actuarial Mathematics||2023||align=left|Part of exam STAM
| align="center"| STAM || align="center"| -- || align="center"| Short-Term Actuarial Mathematics || Severity models, frequency models, aggregate models, construction of empirical models, construction and selection of parametric models, estimating failure time and loss, determining the acceptability of a fitted model, credibility, simulation || align="center"| Computer || align="center"| 3 || align="center"| Yes
|colspan=2 {{n/a|Current exam}}
|-
|-
|'''PA'''||align=left|Predictive Analytics||2018||align=left|''None''
| align="center"| PA || align="center"| --|| align="center"| Predictive Analytics || Exploratory Data Analysis, General Linear Model's (GLM), and Communication of Results using R || align="center"| Computer || align="center"| 2 || align="center"| No
|colspan=2 {{n/a|Current exam}}
|-
|-
|'''IFM'''||align=left|Investment and Financial Markets||2018||align=left|Exam MFE
| align="center"| SRM || align="center"| --|| align="center"| Statistics for Risk Modeling || Basics of Statistical Learning, Linear Models, Time Series Models, Principal Components Analysis, Decision Trees, and Cluster Analysis || align="center"| Computer || align="center"| 3 || align="center"| No
|2022||align=left|''Exam cancelled''
|-
|-
|'''LTAM'''||align=left|Long-Term Actuarial Mathematics||2018||align=left|Exam MLC
| align="center"| -- || align="center"| MAS-I || align="center"| Statistics and probabilistic models || Stochastic processes, survival models (including limited life contingencies concepts), statistics, general linear models (including ordinary least squares) and time series<ref>{{Cite web |url=http://www.casact.org/admissions/syllabus/index.cfm?fa=Ssyllabi&parentID=345 |title=Archived copy |access-date=2016-06-18 |archive-date=2016-04-21 |archive-url=https://web.archive.org/web/20160421081954/https://www.casact.org/admissions/syllabus/index.cfm?fa=Ssyllabi&parentID=345 |url-status=dead }}</ref> || align="center"| Paper and pencil || align="center"| 2 || align="center"| No
|2022||align=left|Exam ALTAM and part of exam FAM
|-
|-
|'''STAM'''||align=left|Short-Term Actuarial Mathematics||2018||align=left|Exam C
| align="center"| -- || align="center"| MAS-II || align="center"| Modern Actuarial Statistics II || Introduction to Credibility, Linear Mixed Models, Bayesian Analysis and Markov Chain Monte Carlo, and Statistical Learning || align="center"| Paper and pencil || align="center" | 2 || align="center" | No
|2022||align=left|Exam ASTAM and part of exam FAM
|-
|'''MFE'''||align=left|Models for Financial Economics||2007||align=left|Part of exam M
|2017||align=left|Exam IFM
|-
|'''MLC'''||align=left|Models for Life Contingencies||2007||align=left|Part of exam M
|2017||align=left|Exam LTAM
|-
|'''C'''||align=left|Construction and Evaluation of Actuarial Models||2005||align=left|Course 4
|2017||align=left|Exam STAM
|-
|'''M'''||align=left|Actuarial Models||2005||align=left|Course 3
|2006||align=left|Exams MFE and MLC
|-
|'''1'''||align=left|Mathematical Foundations of Actuarial Science||2000||align=left|Education system redesign
|2005||align=left|Exam P and VEE
|-
|'''2'''||align=left|Interest Theory, Economics and Finance||2000||align=left|Education system redesign
|2005||align=left|Exam FM and VEE
|-
|'''3'''||align=left|Actuarial Models||2000||align=left|Education system redesign
|2005||align=left|Exam M
|-
|'''4'''||align=left|Actuarial Modeling||2000||align=left|Education system redesign
|2005||align=left|Exam C and VEE
|}

{|class=wikitable style="text-align:center;font-size:small"
|+[[Casualty Actuarial Society]] (CAS) Exams
!Exam code!!Exam title!!Introduced!!Preceded by!!Ceased!!Superseded by!!SOA eqv.
|-
|'''1'''||align=left|Probability||2005||align=left|Exam 1 (2000)
|colspan=2 {{n/a|Current exam}}||'''P'''
|-
|'''2'''||align=left|Financial Mathematics||2005||align=left|Exam 2 (2000)
|colspan=2 {{n/a|Current exam}}||'''FM'''
|-
|'''MAS-I'''||align=left|Modern Actuarial Statistics I||2018||align=left|Exam S
|colspan=2 {{n/a|Current exam}}||{{n/a}}
|-
|'''MAS-II'''||align=left|Modern Actuarial Statistics II||2018||align=left|Exam 4 (2005)
|colspan=2 {{n/a|Current exam}}||{{n/a}}
|-
|'''3F'''||align=left|Investment and Financial Markets||2018||align=left|Exam 3F (2007)
|2022||align=left|''Exam cancelled''||'''IFM'''
|-
|'''S'''||align=left|Statistics and Probabilistic Models<ref>{{Cite web |url=http://www.casact.org/admissions/syllabus/index.cfm?fa=Ssyllabi&parentID=345 |title=Casualty Actuarial Society &#124; Exam S Syllabus |access-date=2016-06-18 |archive-date=2016-04-21 |archive-url=https://web.archive.org/web/20160421081954/https://www.casact.org/admissions/syllabus/index.cfm?fa=Ssyllabi&parentID=345 |url-status=dead }}</ref>||2015||align=left|Exams LC and ST
|2017||align=left|Exam MAS-I||{{n/a}}
|-
|'''3F*'''||align=left|Models for Financial Economics||2007||align=left|Part of exam 3 (2003)
|2017||align=left|Exam 3F (2018)||'''MFE'''
|-
|'''4'''||align=left|Construction and Evaluation of Actuarial Models||2005||align=left|Exam 4 (2000)
|2017||align=left|Exam MAS-II||'''C'''
|-
|'''LC'''||align=left|Models for Life Contingencies||2013||align=left|Part of exam 3L
|2016||align=left|Exam S||{{n/a}}
|-
|'''ST'''||align=left|Models for Stochastic Processes and Statistics||2014||align=left|Part of exam 3L
|2016||align=left|Exam S||{{n/a}}
|-
|'''3L'''||align=left|Models for Life Contingencies and Statistics||2007||align=left|Part of exam 3 (2003)
|2013||align=left|Exams LC and ST||{{n/a}}
|-
|'''3'''||align=left|Statistics and Actuarial Models||2003||align=left|Exam 3 (2000)
|2007||align=left|Exams 3L and 3F (2007)||{{n/a}}
|-
|'''1*'''||align=left|Mathematical Foundations of Actuarial Science||2000||align=left|Education system redesign
|2005||align=left|Exam 1 (2005)||'''1'''
|-
|'''2*'''||align=left|Interest Theory, Economics and Finance||2000||align=left|Education system redesign
|2005||align=left|Exam 2 (2005) and VEE||'''2'''
|-
|'''4*'''||align=left|Actuarial Modeling||2000||align=left|Education system redesign
|2005||align=left|Exam 4 (2005)||'''4'''
|-
|'''3*'''||align=left|Actuarial Models||2000||align=left|Education system redesign
|2003||align=left|Exam 3 (2003)||'''3'''
|-
|colspan=7 align=left|{{small|'''Note''': Exam codes with asterisk (*) indicate the code was reused later in a different title.}}
|}
|}


==Notes==
==Notes==
{{reflist}}
{{reflist}}

==References==
==References==
{{refbegin|2}}
{{refbegin|2}}
Line 155: Line 290:
|access-date=August 14, 2011
|access-date=August 14, 2011
|ref={{harvid|CAS|2011b}}
|ref={{harvid|CAS|2011b}}
|archive-date=November 12, 2020
|archive-url=https://web.archive.org/web/20201112012018/https://www.casact.org/admissions/syllabus/
|url-status=dead
}}
}}
* {{cite web
* {{cite web
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<!-- G -->
<!-- G -->
<!-- H -->
<!-- H -->
* {{cite journal
* {{cite book
|last1=Haastrup
|last1=Haastrup
|first1=Svend
|first1=Svend
|last2=Jens Perch
|last2=Jens Perch
|first2=Nielsen
|first2=Nielsen
|year=2007
|year=1998
|title=The historical perspective of the Danish actuarial profession
|contribution=The historical perspective of the Danish actuarial profession
|title=Transactions of the 26th international congress of actuaries
|publisher=Bell|location=Glasgow
|ref={{harvid|Haastrup|Nielsen|2007}}
|ref={{harvid|Haastrup|Nielsen|2007}}
}}
}}
Line 202: Line 342:
|publisher=[[Institute of Actuaries of Australia]]
|publisher=[[Institute of Actuaries of Australia]]
|ref={{harvid|IAA-About|2021}}
|ref={{harvid|IAA-About|2021}}
|url-status=live
}}
}}
* {{cite web
* {{cite web
Line 211: Line 350:
|publisher=[[Institute of Actuaries of Australia]]
|publisher=[[Institute of Actuaries of Australia]]
|ref={{harvid|IAA-Ed|2021}}
|ref={{harvid|IAA-Ed|2021}}
|url-status=live
}}
}}
* {{cite web
* {{cite web

Latest revision as of 06:41, 21 April 2024

See also: Category:Actuarial associations

The actuarial credentialing and exam process usually requires passing a rigorous series of professional examinations, most often taking several years in total, before one can become recognized as a credentialed actuary. In some countries, such as Denmark, most study takes place in a university setting. In others, such as the U.S., most study takes place during employment through a series of examinations. In the UK, and countries based on its process, there is a hybrid university-exam structure.

Australia

[edit]

The education system in Australia is divided into three components: an exam-based curriculum; a professionalism course; and work experience.[1] The system is governed by the Institute of Actuaries of Australia.[2]

The exam-based curriculum is in three parts. Part I relies on exemptions from an accredited under-graduate degree from either Bond University, Monash University, Macquarie University, University of New South Wales, University of Melbourne, Australian National University or Curtin University.[3] The courses cover subjects including finance, financial mathematics, economics, contingencies, demography, models, probability and statistics. Students may also gain exemptions by passing the exams of the Institute of Actuaries in London.[3] Part II is the Actuarial control cycle and is also offered by each of the universities above.[4] Part III consists of four half-year courses of which two are compulsory and the other two allow specialization.[5]

To become an Associate, one needs to complete Part I and Part II of the accreditation process, perform 3 years of recognized work experience, and complete a professionalism course.[1] To become a Fellow, candidates must complete Part I, II, III, and take a professionalism course. Work experience is not required, however, as the Institute deems that those who have successfully completed Part III have shown enough level of professionalism.[1]

China

[edit]

In China, both China Association of Actuaries (CAA) and Actuarial Society of Hong Kong (ASHK) have their own associate-ship and fellowship credentialing processes. The CAA holds its own system of examinations, while ASHK holds only examination of "Certificate in Hong Kong Insurance Markets and Regulations" (ASHK Certificate). Note that CAA exams were suspended in 2014 but reintroduced in 2023 in an updated structure.[6]

To achieve associate-ship, the CAA requires examination with 5 subjects: (1) probability and mathematical statistics, (2) finance and economics, (3) actuarial mathematics, (4) actuarial models and data analytics, (5) actuarial risk management; while ASHK recognizes associate-ship credentials from Society of Actuaries (SOA), Casualty Actuarial Society (CAS), Institute and Faculty of Actuaries (IFoA), and Institute of Actuaries of Australia (IAA).[7]

To achieve fellowship, the CAA offers 7 tracks: (1) life insurance, (2) non-life insurance, (3) health insurance, (4) social insurance and pension planning, (5) financial risk management, (6) asset management, and (7) data science, each requires examination with another 5 subjects; while ASHK requires fellowship credentials from either of the 4 organizations above and passing the ASHK Certificate examination. [8]

Denmark

[edit]

In Denmark it normally takes five years of study at the University of Copenhagen to become an actuary with no professional experience requirement. There is a focus on statistics and probability theory, and a requirement for a master's thesis.[9] By Danish law, responsibility for the practice of any life insurance business must be taken by a formally acknowledged and approved actuary. Approval as a formally responsible actuary requires three to five years of professional experience.(Haastrup & Nielsen 2007)

Germany

[edit]

Current rules for the German Actuarial Society require an actuary to pass more than 13 exams.[10]

India

[edit]

The Institute of Actuaries of India (formerly Actuarial Society of India) offers both associate-ship and fellowship classes of membership. However, prospective candidates must be admitted to the society as students before they achieve associate-ship or fellowship. The exam sequence is similar to the British model, with Core and Specialty technical and application exams. The exams are conducted twice a year during the months of May–June and October–November.[11] Starting from January 2012, the institute has started conducting entrance exam. Only those applicants who clear the entrance test can appear for the Core Technical papers.

Japan

[edit]

The education system in Japan is administrated by Institute of Actuaries of Japan (IAJ), with associateship and fellowship credential levels.[12]

The IAJ's requirement for associateship include passing the primary examination with 5 basic subjects: (1) mathematics, (2) life insurance mathematics, (3) non-life insurance mathematics, (4) pension mathematics, (5) accounting, economics and investment theory. [13]

The IAJ offers 3 tracks for fellowship: life insurance, non-life insurance, and pension. Each requires passing the secondary examination with 2 advanced subjects.

Norway

[edit]

In Norway the education to become an actuary takes five years. The education usually consists of a bachelor's degree (three years) and a master's degree (two years). The bachelor's degree needs to contain a specific number of courses in mathematics and statistics. The master's degree usually consists of one year of courses and one year writing a master's degree about a topic related to the actuarial profession. The University of Bergen and The University of Oslo offer the education to become an actuary in Norway.[14] To become an international qualified actuary, a person with a Norwegian actuarial education must also take two courses in economics (macroeconomics and accounting) and a course in ethics. The ethics course, which lasts a day, is offered by the Norwegian Society of Actuaries.[15]

South Africa

[edit]

Actuaries in South Africa are served by the Actuarial Society of South Africa (ASSA). Until 2010, the requirement to qualify as an actuary in South Africa was to pass the exams hosted by the UK bodies. Starting in 2010, a South African actuarial qualification hosted by ASSA has replaced this arrangement. Key changes include exam syllabuses based on South African-specific content. The UK actuarial professional bodies, however, still support qualification through the UK. Students may receive exemption from part of the examinations for qualification from approved universities. The South African qualification does have mutual recognition with many of the international actuarial bodies as well as approval of the syllabus from the International Actuarial Association.

One may obtain the Chartered Enterprise Risk Actuary (CERA) designation through the ASSA.

South Africa pioneered the actuarial banking route, with fellowship exams (equivalent to the UK's SA exams) in banking beginning in the late 2010s.

Sweden

[edit]

Actuarial training in Sweden takes place at Stockholm University. The five-year master's program (for those with no previous university-level knowledge in mathematics, or without a bachelor's degree in mathematics) covers the subjects mathematics, mathematical statistics, insurance mathematics, financial mathematics, insurance law and insurance economics. The program operates under the Division of Mathematical Statistics.[16]

Taiwan

[edit]

Qualification in Taiwan is administrated by Actuarial Institute of the Republic of China (Taiwan) (AIRC/AICT), with associateship and fellowship credential levels.[17]

The AIRC/AICT offers 3 tracks for its membership: life insurance, general insurance, and pension. Although with own design of education system, the AIRC/AICT practically only holds exams testing knowledge specifically to Taiwan and mainly recognizes examination credits from Society of Actuaries (SOA), Casualty Actuarial Society (CAS), Institute and Faculty of Actuaries (IFoA), Institute of Actuaries of Australia (IAA), and Institute of Actuaries of Japan (IAJ). The associateship and fellowship credentials from these organizations are also recognized.[18] The AIRC/AICT has coordinated with SOA and CAS to integrate the Taiwanese exams into their education systems (SOA Regulation and Taxation Module[19] and CAS Exam 6T[20]).

United Kingdom and Ireland

[edit]
Main articles: Institute and Faculty of Actuaries and Society of Actuaries in Ireland

Qualification in the United Kingdom and Ireland consists of a combination of exams and courses provided by the Institute and Faculty of Actuaries. The exams may only be taken upon having officially joined the body,[21] unlike many other countries where exams may be taken earlier. Most trainee actuaries study while working for an actuarial employer using resources provided by ActEd (The Actuarial Education Company, a subsidiary of BPP Actuarial Education Ltd.), which is contracted to provide actuarial tuition for students on behalf of Institute and Faculty Education Ltd (IFE), a subsidiary of the Institute and Faculty of Actuaries.[22]

However, a candidate may offer proof of having previously covered topics (at a high enough standard, usually while at university) to be exempt from taking certain subjects.[23]

The exams themselves are split into four sections:[24] Core Principles (CP), Core Practices (CP), Specialists Principles (SP), and Specialist Advance (SA). For students who joined the Profession after June 2004, a further requirement that the student carry out a "Work-based skills" exercise has been brought into effect. This involves the student submitting a series of essays to the Profession detailing the work that he or she has performed. In addition to exams, essays and courses, it is required that the candidate have at least three years' experience of actuarial work under supervision of a recognized actuary to qualify as a Fellow of the Institute of Actuaries (FIA) or of the Faculty of Actuaries (FFA).[25]

Exam code Exam title Format
CM1 Actuarial Mathematics Session based exam
CM2 Financial Engineering and Loss Reserving Session based exam
CS1 Actuarial Statistics Session based exam
CS2 Risk Modelling and Survival Analysis Session based exam
CB1 Business Finance Session based exam
CB2 Business Economics Session based exam
CB3 Business Management Online exam
CP1 Actuarial Practice Session based exam
CP2 Modelling Practice Online exam
CP3 Communications Practice Online exam

Note that the UK Profession is currently introducing the Certified Actuarial Analyst (CAA) qualification to "provide those working in financial and actuarial roles at a technical level around the world with valuable skills and a well respected qualification".[26]

United States and Canada

[edit]

Credentialing organizations

[edit]
Main articles: Society of Actuaries and Casualty Actuarial Society
Main articles: American Academy of Actuaries and Canadian Institute of Actuaries

In the U.S., for life, health, and pension actuaries, exams are given by the Society of Actuaries, while for property-casualty actuaries the exams are administered by the Casualty Actuarial Society.

To sign certain statements of actuarial opinion, however, American actuaries must be members of the American Academy of Actuaries. Academy membership requirements include membership in one of the recognized actuarial societies, at least three years of full-time equivalent experience in responsible actuarial work, and either residency in the United States for at least three years or a non-resident or new resident who meets certain requirements.[27] Continuing education is required after certification for all actuaries who sign statements of actuarial opinion.[28]

The Canadian Institute of Actuaries (the CIA) recognizes fellows of both the Society of Actuaries and the Casualty Actuary Society, provided that they have specialized study in Canadian actuarial practice. For fellows of the SOA, this is fulfilled by taking the CIA's Practice Education Course (PEC). For fellows of the Casualty Actuarial Society, this is fulfilled by taking the nation-specific Exam 6-Canada, instead of Exam 6-United States.[29] Further, the CIA requires three years of actuarial practice within the previous decade, and 18 months of Canadian actuarial practice within the last three years, to become a fellow.[30]

Education and exams

[edit]

The Society of Actuaries' requirements for Associateship (ASA) include passing 6 preliminary examinations (probability, financial mathematics, fundamentals of actuarial mathematics, statistics for risk modeling, predictive analytics, and one from either advanced long-term actuarial mathematics or advanced short-term actuarial mathematics), validating educational experience (VEE) in 3 fields (economics, accounting and finance, and mathematical statistics), completing self-learning series and passing their assessments (advanced topics in predictive analytics, five-module fundamentals of actuarial practice), and taking a course on professionalism.[31] For Fellowship (FSA), three other modules, three or four exams depending on specialty track, and a special fellowship admission course is added.[32] The Casualty Actuarial Society requires the successful completion of seven examinations, two modules, and economics and corporate finance VEEs for Associateship and three additional exams for Fellowship. In addition to these requirements, casualty actuarial candidates must also complete professionalism education and be recommended for membership by existing members.[33]

Dependent on which society a student chooses to pursue, there are anywhere from six to seven preliminary exams. Most of the exams are multiple choice and administered on computers at Prometric testing centers. Candidates are allowed to use a calculator from an approved list.[34] The exams are timed and last between three and four hours. Some tests provide instant feedback as to whether or not a candidate has passed that particular exam (see table below). All test scores (on a 0-10 scale with 6 or higher passing) are posted six to eight weeks after the test. However, due to the way the test is scaled, the scores can range from 0–10, but there are also situations where the highest grade for a test is a 9 even if every single question was answered correctly. This is because the interval is 10 percent of the score required to pass,[35] which means the following:[36]

Let P be the passing percentage, the transcript will show.

Range <0.5P 0.5P–0.6P 0.6P–0.7P 0.7P–0.8P 0.8P–0.9P 0.9P–P P–1.1P 1.1P–1.2P 1.2P–1.3P 1.3P–1.4P >1.4P
Score 0 1 2 3 4 5 6 7 8 9 10
Result Fail Pass

If , then , i.e. the requirement for the percentage of score to get grade 10 will be higher than . That is, grade 10 is unachievable. Hence, the highest grade achievable can be 9 for a test.

SOA administers exam LTAM (previously MLC), which covers life contingencies topics. Starting in May 2014, MLC includes both multiple choice and open-response questions. SOA made this change because, in their view, strict multiple-choice questions are not sufficient or adequate to test whether candidates are familiar with and fluent in the material. The test is four hours long, allows calculators, and is administered via a paper-and-pencil format. Multiple-choice questions account for 40% of the exam, and open-response questions account for 60% of the exam. Candidates may freely move between the two sections. The two sections are graded separately. However, since the multiple-choice questions are easier, only candidates who have answered a certain percentage of the multiple-choice questions correctly have their written answers graded. For instance, a multiple-choice score of 24 points was needed to have written-answer questions graded for the April 2021 LTAM exam.[37]

Society of Actuaries (SOA) Exams
Exam code Exam title Introduced Preceded by Ceased Superseded by
P Probability 2005 Course 1 Current exam
FM Financial Mathematics 2005 Course 2 Current exam
FAM Fundamentals of Actuarial Mathematics 2023 Part of exams LTAM and STAM Current exam
SRM Statistics for Risk Modeling 2018 None Current exam
ALTAM Advanced Long-Term Actuarial Mathematics 2023 Part of exam LTAM Current exam
ASTAM Advanced Short-Term Actuarial Mathematics 2023 Part of exam STAM Current exam
PA Predictive Analytics 2018 None Current exam
IFM Investment and Financial Markets 2018 Exam MFE 2022 Exam cancelled
LTAM Long-Term Actuarial Mathematics 2018 Exam MLC 2022 Exam ALTAM and part of exam FAM
STAM Short-Term Actuarial Mathematics 2018 Exam C 2022 Exam ASTAM and part of exam FAM
MFE Models for Financial Economics 2007 Part of exam M 2017 Exam IFM
MLC Models for Life Contingencies 2007 Part of exam M 2017 Exam LTAM
C Construction and Evaluation of Actuarial Models 2005 Course 4 2017 Exam STAM
M Actuarial Models 2005 Course 3 2006 Exams MFE and MLC
1 Mathematical Foundations of Actuarial Science 2000 Education system redesign 2005 Exam P and VEE
2 Interest Theory, Economics and Finance 2000 Education system redesign 2005 Exam FM and VEE
3 Actuarial Models 2000 Education system redesign 2005 Exam M
4 Actuarial Modeling 2000 Education system redesign 2005 Exam C and VEE
Casualty Actuarial Society (CAS) Exams
Exam code Exam title Introduced Preceded by Ceased Superseded by SOA eqv.
1 Probability 2005 Exam 1 (2000) Current exam P
2 Financial Mathematics 2005 Exam 2 (2000) Current exam FM
MAS-I Modern Actuarial Statistics I 2018 Exam S Current exam —
MAS-II Modern Actuarial Statistics II 2018 Exam 4 (2005) Current exam —
3F Investment and Financial Markets 2018 Exam 3F (2007) 2022 Exam cancelled IFM
S Statistics and Probabilistic Models[38] 2015 Exams LC and ST 2017 Exam MAS-I —
3F* Models for Financial Economics 2007 Part of exam 3 (2003) 2017 Exam 3F (2018) MFE
4 Construction and Evaluation of Actuarial Models 2005 Exam 4 (2000) 2017 Exam MAS-II C
LC Models for Life Contingencies 2013 Part of exam 3L 2016 Exam S —
ST Models for Stochastic Processes and Statistics 2014 Part of exam 3L 2016 Exam S —
3L Models for Life Contingencies and Statistics 2007 Part of exam 3 (2003) 2013 Exams LC and ST —
3 Statistics and Actuarial Models 2003 Exam 3 (2000) 2007 Exams 3L and 3F (2007) —
1* Mathematical Foundations of Actuarial Science 2000 Education system redesign 2005 Exam 1 (2005) 1
2* Interest Theory, Economics and Finance 2000 Education system redesign 2005 Exam 2 (2005) and VEE 2
4* Actuarial Modeling 2000 Education system redesign 2005 Exam 4 (2005) 4
3* Actuarial Models 2000 Education system redesign 2003 Exam 3 (2003) 3
Note: Exam codes with asterisk (*) indicate the code was reused later in a different title.

Notes

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  1. ^ a b c (IAA-Ed 2021)
  2. ^ (IAA-About 2021)
  3. ^ a b (IAA-Part I 2006)
  4. ^ (IAA-Part II 2006)
  5. ^ (IAA-Part III 2006)
  6. ^ "China Brings Back Insurance Actuary Qualifying Exams After Nine-Year Hiatus". www.yicaiglobal.com. Retrieved 5 September 2023.
  7. ^ [1]
  8. ^ ASHK Certificate Overview
  9. ^ (Norberg 1990)
  10. ^ (DAV 2011)
  11. ^ (ASI 2006)
  12. ^ Institute of Actuaries of Japan
  13. ^ How to Become an Actuary
  14. ^ (University of Bergen 2011)
  15. ^ (Norwegian Society of Actuaries 2011)
  16. ^ (Stockholm University 2006)
  17. ^ Actuarial Institute of the Republic of China (Taiwan)
  18. ^ How to Become an Actuary (AIRC)
  19. ^ Regulation and Taxation Module
  20. ^ Exam 6T
  21. ^ "How to Register Student". www.actuaries.org.uk. Retrieved 2022-01-20.
  22. ^ "Exam preparation | the Actuarial Profession". Archived from the original on 2012-11-06. Retrieved 2013-12-31.
  23. ^ "Frequently asked questions on exemptions | the Actuarial Profession". Archived from the original on 2013-03-05. Retrieved 2013-12-31.
  24. ^ "Our Exams Explained". www.actuaries.org.uk. Retrieved 2022-01-20.
  25. ^ (Institute and Faculty of Actuaries 2011a)
  26. ^ "New qualification takes a step forward". www.actuaries.org.uk. Retrieved 2022-01-20.
  27. ^ (AAA 2010)
  28. ^ (AAA 2008)
  29. ^ (CAS 2011b)
  30. ^ (CIA 2004)
  31. ^ (SOA 2012a)
  32. ^ (SOA 2012c)
  33. ^ (CAS 2011a)
  34. ^ "Identification and Calculators | be an Actuary". Archived from the original on 2013-09-25. Retrieved 2016-06-18.
  35. ^ "Grading - Reporting of Examination Results | SOA". www.soa.org. Retrieved 2021-12-01.
  36. ^ "school_and_exam_questions - actuary". libreddit.spike.codes. Retrieved 2021-12-01.
  37. ^ "APRIL 2021 EXAMINATION RESULTS" (PDF).
  38. ^ "Casualty Actuarial Society | Exam S Syllabus". Archived from the original on 2016-04-21. Retrieved 2016-06-18.

References

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