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Beginning Exams & Career 
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Preparing for your First Actuarial Exam
Beginning Your Actuarial Career (All)
Skills & Exams Overview
Actuarial Internships
Full-Time Positions
Employer Actuarial Student Programs
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HOW TO BEST PREPARE FOR YOUR FIRST ACTUARIAL EXAM
The actuarial exams are some of the most demanding professional tests administered. It is not enough to rely upon basic math
aptitude and college or graduate coursework to pass these tests. The CAS and SOA have spent many hours evaluating the preparation
process, and find that first time exam takers often underestimate their preparation needs. To pass the exams requires many hours
of independent study and the right resources.
For first time actuarial students, the task can be even more challenging.
It is very difficult for first-timers to understand what is expected on the exams and how they are going to be tested. In addition, many students are not aware of the numerous resources available to help them best prepare.
This leads many students to under prepare or to fail to obtain the necessary study materials required to pass or both.
Problem: Lack of Preparation
It is quite common for many first time actuarial students to simply underestimate the amount of study time required to pass the first exam. Too often students start studying only a few weeks before the exam, underestimate the amount of material covered in the exam or frankly feel overconfident because of their strong aptitude for math.
Solution: Start Early
There is no substitute for starting early. No matter how well you have done in your math classes, it is best to start at least 8 weeks prior to the P/1 exam. Keep in mind, that everyone taking this exam has excelled in mathematics. The exams are very rigorous and are designed to test knowledge of the material at a very high level. That is why the pass rate on this exam typically ranges only in the 30 to 40% range.
Solution: Take One Exam at a Time
Make sure that you have passed or are nearly certain of passing SOA/CAS Exam P/1 before beginning your studies for FM/2. There is no sense getting two “5s” when you can get one 6!
Problem: Inadequate Resources
The SOA and CAS do not make study material recommendations beyond the suggested or required textbooks. In fact, many first time students are completely unaware that a huge number of materials are available to help them prepare for each exam. Unfortunately, this puts first time actuarial students at a big disadvantage. Since you have found your way to this website, you can now see that Actuarial Bookstore offers materials that include:
- Study Manuals that condense and explain the entire syllabus material and typically provide many sample exam questions with solutions.
- Flashcards to help with the memorization of critical equations and other material.
- Live Seminars, DVD Seminars and Online Courses taught by leading actuarial science educators that explain the entire syllabus material and include exam questions and solutions.
- Practice tests that seek to replicate what you’ll face during a real exam with detailed solutions provided./li>
- Many other specialty products such as the Calculus Review guide designed specifically to prepare actuarial students for Exam P/1.
Solution: Obtain the right study materials
You will save yourself a tremendous amount of time and energy, and significantly increase your odds of passing the exams by purchasing supplemental actuarial study materials for each exam. There are many competing products offered by distinguished actuarial authors and publishers so you really cannot make a wrong choice. To help you make your choices, online samples of many of these products can be viewed prior to purchase. In addition, we offer a 30-day refund policy on most products. Another option to help you select the right materials for you is to contact us and ask for a recommendation. We often recommend calling because it allows for more “give and take” than email.
At the very least we recommend purchasing a study manual for each exam. For most actuarial students, the study manual becomes their primary studying resource along with the required/suggested readings. The price of study manuals begins around $75.00 for the first two actuarial exams. In most instances, you’ll want to purchase the most recent edition of the study manual as they are updated regularly to match changes in the syllabus, to correct errata and to add additional sample questions and solutions. Other materials may also be considered based upon how well your studying is going or depending upon individual weaknesses you may have with respect to the material. For example, if your studying is going well but you want more practice with exam taking, then purchasing a set of complete practice exams may be very beneficial. Or if you haven’t seen calculus in a few years, then you may want to consider the Calculus Review product as it was designed for actuarial exams. The broad array of choices allows each student to choose supplemental materials that are most appropriate for their needs.
Feedback from current and past students confirms the key to passing actuarial exams is “over-studying”. The most successful actuarial students commit 100+ hours per exam reviewing materials, taking practice tests, participating in study groups and seminars, and structured studying. So start early, study diligently, and make sure that you have all the right materials to help you best prepare. Best of luck!
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BEGINNNING MY CAREER IN THE ACTUARIAL PROFESSION
The Actuarial Bookstore is often asked the following question,
“How do I begin my career in the actuarial profession?” The following information
seeks to address this question and point aspiring actuarial
students to other resources that they may find helpful to their pursuits. |
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Skills & Exams Overview:
The basic skill set of an actuarial student is someone with strong math aptitude.
Actuaries are typically individuals with undergraduate or graduate degrees in math, applied math,
actuarial science, economics, finance or statistics. This is not to say non-math based majors
cannot be actuaries, but they may not have the academic background to make the next step quite
as easily.
The actuarial profession gains structure from the examinations that are in place to measure an
individual’s knowledge of actuarial theories and principles. The current Casualty Actuarial Society (CAS)
exams require 7 exams to achieve the ACAS (Associate) designation while there are 2 additional exams required
to complete the FCAS (Fellow) designation. The Society of Actuaries (SOA) currently require 4 exams
(courses P, FM, M and C) plus both sections of the FAP to achieve the ASA (Associate) designation while an
additional FSA exam (split into 2 parts, CSP and DP) and the Strategic Business Management Module are required to
achieve the FSA (Fellow) designation.
Historically, exams have been offered twice a year, in April/May and October/November, although Exam P/1 is
administered four times a year. The SOA and CAS jointly administer 3 exams; exams P/1, FM/2 and C/4.
This is very helpful to students as they begin their careers because it allows them to take the exams
without having to formally decide whether they want to commit to Property/Casualty insurance (CAS oriented),
Life/Annuity/Heath insurance (SOA oriented) or Pension/Benefits consulting (SOA oriented) prior to passing some
exams and acquiring some work experience.
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Actuarial Internships:
An actuarial internship is an excellent way to learn more about the profession
as well as strengthen your resume. Internships likely consist of part-time or full-time
work, generally unpaid, which takes place either during a school vacation or in conjunction
with academic pursuits. The work assigned to interns is often data focused and can incorporate
projects assisting Actuarial Analysts with rate filings, computer programming associated with
pricing or loss reserve models, etc. An internship is the best way for those interested in the
profession to gain “hands-on” knowledge of the work Actuaries perform daily. Moreover,
employers feel this is invaluable experience for new graduates to have in determining whether
this is a profession they are committed to long-term. Internships are also a great source for
first jobs. The company you interned for may choose to present you with an offer for full-time
employment. If not, they are at least a source for references.
In order to find internship opportunities, work with your college or university career center
to network with alumni and attend job fairs where there are insurance company and consulting
firm representatives present. If you do not have those resources available to you, check out
www.beanactuary.org , www.soa.org
or www.casact.com for postings. On occasion, there can be
listings on the main on-line job boards such as Monster.com, Careerbuilder.com, and Hotjobs.com.
If you have no personal contacts and aren’t finding listings posted, consider contacting the
Human Resources department or the Chief Actuary of local insurance companies and consulting firms
to discuss your interest in the profession. The actuarial profession is relatively small.
In most instances, personal contact with these individuals will yield greater results then sending
unsolicited resumes or email inquiries.
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Full-Time Positions:
Most potential employers look for entry-level actuarial students who have
demonstrated success passing the actuarial exams. This is the single biggest
factor in getting the attention of employers. On occasion, there are Actuarial
Technician or Assistant Analyst positions requiring no exams, but to start at a
company receiving support for future exams, you should have sat for and passed at
least one exam prior to interviewing. As a greater number of graduates consider
entering the profession, the competition for entry-level actuarial jobs becomes
greater. Some employers now seek applicants with success passing two or more exams.
Keep in mind there is a delicate balance between experience and exams once students are
employed, so you should be careful not to pass too many exams so as to exceed the company’s
salary structure for entry level applicants. A student with 3 or more exams will almost
always have experience, preferably 1 or more years in an actuarial role.
Once you have passed an exam or two (and have hopefully
gained experience as an actuarial intern), it is time to
initiate your job search. Once again, you should refer to
any resources provided by your university or college and
attend relevant job fairs. On-line job boards can also be
helpful but you may wish to have some assistance; dedicated
actuarial recruiters have expertise on the market, current
openings, interviewing tips, job offer negotiations, etc.
For a list of recruiting firms, visit
www.actuary.com/actuarial-recruiters.
Regardless of whether you choose to request assistance from recruiting
agencies, your search should be methodical and organized. Begin by
researching employers matching your geographical preferences and/or
type of insurance. If there are companies which specifically interest
you but there do not appear to be any posted openings, network with one
of their actuaries. This should ideally be someone you’ve studied for exams
with, met at an exam seminar or sitting, alumni from your school, friend of
family, etc. If these options don’t work out, and you still don’t know how
to approach the company, review the SOA or CAS member directories on-line
and create a list of employees for the company you would like to contact.
If the Chief Actuary is not listed, try to identify someone with the title
“Actuarial Director”, “Director of Actuarial Services”, “Actuarial Manager”
etc. and send them a personalized note. Be aware that you will not always get
a response but you may get some advice or be referred to someone who can assist you. |
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Employer Actuarial Student Programs
Most insurance companies and consulting firms offer aspiring actuaries
support in their efforts to achieve Associateship and Fellowship. This support
is typically called a “student program” and it entails some
combination of study time (average of 110 hours per exam for the first attempt),
paid exam registration fees and associated travel expenses, reimbursement for
textbooks and supplies, and perhaps even time off around the time of the exam sitting.
Many student programs (particularly at the largest insurance companies) are
rotational in nature with each rotation lasting approximately 18-24 months.
These rotations give actuarial students exposure to different products and
functional areas within the company. Of course, the same broad exposure may
also be gained at a smaller insurance company or consulting firm.
Companies often pay their actuarial students bonuses or link base salary raises
to passing exams. Entry-level salaries often begin in the $45,000 - $50,000 range
and your compensation can grow quickly if you are successful in passing exams.
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