Now that we have covered the basics of the actuarial profession and some potential career paths, we can now move on to how to get there. As in any other industry, actuarial science specific credentialing exists and will play a significant role in the both the type and quality of company and position you can pursue. Similar to the Bar Exam, the CPA Exam, or a physician’s specialty board exams, actuaries also have graduate level examinations necessary to progress to the next level in the career. The actuarial exams, however, assume certain characteristics of nearly all other graduate exams, then add their own twist.
While the graphic captures the approximate cumulative length (~14 hours) of the actuarial fellowship exams (3-4) as well as the diminutive relative frequency of passing, some additional idiosyncrasies of the fellowship exams arise in the mandatory modules and fellowship admission course. In addition, the Society of Actuaries offers six separate paths, all of which we will delve into a bit later. The only parallel to the SOA’s fellowship structure lies in the board exams doctors take to enter a specialty; similar to a physician choosing internal medicine or pediatrics, an actuary can take any of the following tracks and end in a different career path:
- Corporate Finance
- Quantitative Finance
- Individual Life and Annuities
- Retirements Benefits
- Group and Health
- General Insurance
Achieving a fellowship, more commonly referred to as an FSA for Fellowship of the Society of Actuaries, in any of these branches will allow an actuary to achieve success at the highest level. We will take a look at each branch individually throughout the course of this blog, but most senior actuary and actuarial director positions open up only for FSA recipients.
Achieving an FSA typically requires three exams, four learning modules, and a Fellowship Admissions Course by the SOA. While the total amount of exams taken varies between three and four depending on the path chosen, the total time spend testing always runs between thirteen and fifteen total hours. Each module consists of 50-60 hours of content in addition to a comprehensive test and business problem (we will visit specific modules in later posts). The SOA intends for candidates to complete the Fellowship Admissions Course upon completing all exams and modules, and hopes that candidates learn and maintain a professional attitude while increasing proficiency in solution evaluation and communication. The FAC consists of a business case to which a team of potential FSAs must create and present a solution; this solution and its presentation will determine whether the candidate will receive the FSA.