Society of Actuaries
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[edit] Mission Statement
The Society of Actuaries is a professional organization dedicated to serving the public and Society members. The Society’s vision is for actuaries to be recognized as the leading professionals in the modeling and management of financial risk and contingent events. The Society of Actuaries is committed to its strategic vision and mission of advancing the actuarial profession. Its intent is to expand its relationships with members, volunteers and other actuarial organizations—nationally and globally—to enhance the role and overall impact of actuaries in general.
The Society of Actuaries is committed to:
- Providing basic education in the fundamental principles of actuarial science, advanced education and professional development, and continuing education for practicing actuaries.
- Conducting research to develop studies of historical experience and techniques for projections into the future, analyzing the actuarial aspects of public policy issues and providing the foundation for further expansion of the profession.
- Promoting high standards of professional competence and conduct within the actuarial profession
Motto: “The work of science is to substitute facts for appearances and demonstrations for impressions.” - Ruskin
[edit] Membership
The Society’s members are mainly involved in the life, health, and pension areas of the actuarial profession. The two designations offered by the Society “Associate of Society of Actuaries,” ASA, and “Fellow of the Society of Actuaries,” FSA.
Requirements for membership for the SOA include the actuarial exams, a comprehensive series of competitive exams. Topics covered in the exams include mathematics, finance, insurance, economics, interest theory, life models, and actuarial science. Only Associates and Fellows are considered members of the Society. Non-members working in the actuarial profession and taking exams are often referred to as “students” or “candidates”.
- Associate
- Has an understanding of the basic mathematics underlying actuarial science and of the application of fundamental mathematical concepts to technical actuarial problems. The Associate attaining membership after July 31, 1995 has also demonstrated a general understanding of financial security systems and of fundamental investment management principles. The Associate attaining membership in 2000 or later has also completed a professionalism course covering the professional code of conduct and the importance of adherence to recognized standards of practice.
- Fellow
- Has demonstrated a knowledge of the business environments within which financial decisions concerning pensions, life insurance, health insurance, and investments are made including the application of mathematical concepts and other techniques to the various areas of actuarial practice. The Fellow has further demonstrated an in-depth knowledge of the application of appropriate techniques to a specific area of actuarial practice.
Members of the SOA are eligible for membership at the American Academy of Actuaries which represents and unites U.S. actuaries from all practice areas. A three-year responsible actuarial experience requirement may also apply.
[edit] Preliminary exams
The first four exams, known as “Preliminary Exams” consist largely of core mathematics related to actuarial science including probability, statistics, interest theory, life contingencies, and risk models. Exams 1, 2, & 4, recently renamed P, FM, and C, are common to both the SOA and the CAS. However, while the third examination of the SOA, also known as Exam M, is accepted by the CAS, the reverse does not hold.
| Subject Matter | SOA Exam | CAS Exam | Table Key |
|---|---|---|---|
| Probability | P | Exam 1 | Exam Interchangeable |
| Financial Mathematics | FM | Exam 2 | Exam Interchangeable |
| Modeling | M | Exam 3 | Exam Not Interchangeable |
| Constructing Models | C | Exam 4 | Exam Interchangeable |
This joint sponsorship allows students to work on the initial requirements before they choose a specific discipline to pursue.
The syllabus has a tendency to be adjusted regularly, which makes comparing exams from different 5-year blocks somewhat difficult.
[edit] Upper-level exams
Upper-level exam topics for the SOA include plan design, risk classification, ratemaking, valuation, and finance & investments. Fellowship exams for the SOA cover applied modeling and an area of specialization chosen by the candidate.
[edit] See also
- Office of the Chief Actuary USA and Canada
- Category:Actuarial associations
