The 7 Exams Required for Certification
The process of becoming an actuary is a rather lengthy one and requires a lot of hard work, commitment and dedication on part of the candidates aspiring to become actuaries. For those who want to pursue actuarial careers and start now, there are a few exams and requirements you would need to meet over the period of years till you ultimately obtain the title of professional actuary.
What is required to become an actuary?
In order to have a career as an expert in actuarial science, you would need to start with some of the preliminary tests and then move on to the certifications and meet their requirements. These certifications get you the title of Associate and Fellow and then finally Actuary. You can become an Actuary and work for a financial services company or actuarial consulting firm.
7 Exams for a Certification
There are some exams that are part of the rigorous process for becoming an expert of actuary science. This process has been made so rigorous because there is a lot of competition in the field of actuaries and there is the requirement for only the best of the best. There are a variety of exams at every step of the way till you get your certification as professional actuary. The Society of Actuaries and the Casualty Actuary Society administer these. These exams are designed around the subject areas critical in actuarial science.
Starting with the preliminary actuarial exams, there are many others as well. There are 5 exams that come under the category of the preliminary exams. All these are computer-based exams. The first one is the probability exam, which focuses towards developing your knowledge of probability. This exam tests you on the key statistical methods and techniques that you will be required to use as an actuary.
The second one is the Financial Mathematics exam in which interest theory and derivatives are covered and tests you on your knowledge of basic calculus and statistics in combination with financial theory. The third one is the Financial Economics Exam, which tests you on interest rate models as well as derivatives and financial risk analysis and management techniques. In the fourth Life contingencies exam, candidates are tested for gaining the credit for CAS Life contingencies and statistical exam. The fifth exam is related to the techniques used for constructing and evaluating actuarial models.
Then is the certification for Associate of Society of Actuaries, which requires demonstrated knowledge in the techniques of risk management and modeling. The professional code of conduct is also a compulsory course for this. After this certification, as a next step toward becoming an expert actuarial science advisor, the next certification is for chartered Enterprise Risk Analyst. This requires the candidate to demonstrate extensive knowledge in identifying, measuring and managing risk.
The final certification before you become a certified actuary is that for Fellow of society of Actuaries. This requires candidates to be tested on their knowledge of various business environments and financial decision making related to financial instruments and insurance. After this, you become an expert in actuarial science and are in a position to act as advisor to people.