Actuarial credentialing and exams

The education system in Australia is divided into three components: an exam-based curriculum; a professionalism course; and work experience.{{harv|IAA-Ed|2021}} The system is governed by the Institute of Actuaries of Australia.{{harv|IAA-About|2021}}

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.{{harv|IAA-Part I|2006}} 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. Part II is the Actuarial control cycle and is also offered by each of the universities above.{{harv|IAA-Part II|2006}} Part III consists of four half-year courses of which two are compulsory and the other two allow specialization.{{harv|IAA-Part III|2006}}

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. 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.

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.{{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}}

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).[http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1117738&itemId=928]

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. [https://www.actuaries.org.hk/pages/9/Actuarial%20Education%20&%20Certification/17/ASHK%20Certificate/1/Overview ASHK Certificate Overview]

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.{{harv|Norberg|1990}} 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}}

Current rules for the German Actuarial Society require an actuary to pass more than 13 exams.{{harv|DAV|2011}}

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.{{harv|ASI|2006}} 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 education system in Japan is administrated by Institute of Actuaries of Japan (IAJ), with associateship and fellowship credential levels.[https://www.actuaries.jp/english/ Institute of Actuaries of Japan]

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. [https://www.actuaries.jp/english/info/examination.html How to Become an Actuary]

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

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.{{harv|University of Bergen|2011}}

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.{{harv|Norwegian Society of Actuaries|2011}}

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.

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.{{harv|Stockholm University|2006}}

Qualification in Taiwan is administrated by Actuarial Institute of the Republic of China (Taiwan) (AIRC/AICT), with associateship and fellowship credential levels.[http://www.airc.org.tw/ Actuarial Institute of the Republic of China (Taiwan)]

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.[http://www.airc.org.tw/re/files/Be%20an%20Actuary-20230810.pdf How to Become an Actuary (AIRC)] The AIRC/AICT has coordinated with SOA and CAS to integrate the Taiwanese exams into their education systems (SOA Regulation and Taxation Module[https://www.soa.org/education/exam-req/edu-module-reg-detail Regulation and Taxation Module] and CAS Exam 6T[https://www.casact.org/exam/exam-6t-regulation-and-financial-reportingtaipei Exam 6T]).

{{main|Institute and Faculty of Actuaries|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,{{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}} 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.{{Cite web |url=http://www.actuaries.org.uk/students/pages/exam-preparation |title=Exam preparation | 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 }}

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.{{Cite web |url=http://www.actuaries.org.uk/students/pages/frequently-asked-questions-exemptions |title=Frequently asked questions on exemptions | 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 }}

The exams themselves are split into four sections:{{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}} 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).{{harv|Institute and Faculty of Actuaries|2011a}}

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".{{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}}

{{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.{{harv|AAA|2010}} Continuing education is required after certification for all actuaries who sign statements of actuarial opinion.{{harv|AAA|2008}}

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.{{harv|CAS|2011b}} 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.{{harv|CIA|2004}}

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.{{harv|SOA|2012a}} For Fellowship (FSA), three other modules, three or four exams depending on specialty track, and a special fellowship admission course is added.{{harv|SOA|2012c}} 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.{{harv|CAS|2011a}}

Depending on which society a student chooses to pursue, there are six or 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.{{Cite web |url=http://www.beanactuary.com/exams/rules/?fa=identification-and-calculators#calculator |title=Identification and Calculators | 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 }} 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 exam window ends. The scores are based on ratios to the pass mark; for example, a 6 indicates that the candidate received 100% to 110% of the passing score required for that sitting. Similarly, scoring less than 50% of the passing score would yield a 0, and scoring 150% or more of the passing score would yield a 10. A sufficiently high pass mark could thus render a grade of 10 impossible if there are not enough points on the exam to score over 150% of that requirement.

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{{refend}}

• [http://www.soa.org/ Society of Actuaries website]
• [http://www.casact.org/ Casualty Actuarial Society website]
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• [http://www.beanactuary.org Actuarial Exam information for students]
• [http://www.actuaries.org International Actuarial Association]
• [http://www.acted.co.uk ActEd website]
• [http://www.actuarialsociety.org.za/ Actuarial Society of South Africa]

Category:Actuarial science

Category:Mathematical science occupations

Category:Professional titles and certifications