The path to becoming an actuary involves going through a well-structured education plan. This involves university-level education and post-university examinations, as well as other requirements. Typical questions always raised by school leavers interested in actuarial science are: 1) what is the next step, and 2) what’s with the different societies/institutes? Currently, in ASM, we have many actuarial graduates in the midst of examinations from the major professional bodies stated below. Apart from passing the examinations, there are also practical experience requirements and residential courses to be attended. These ensure that actuaries are not only technically capable, but are also aware of other professional requirement such as Code of Conduct and ethical workplace behaviour. We hope the short description here would help school leavers to understand more of the different options they have. The road to being a qualified actuary is long, but incredibly rewarding!

In Malaysia, most actuaries are from one of the following actuarial bodies:

Actuaries Institute – Australia

The actuarial education program in Australia is made up of three parts.

Foundation Program consists of six subjects across three main modules:

  • CS1 – Actuarial Statistics
  • CS2 – Risk Modelling and Survival Analysis
  • CM1 – Actuarial Mathematics
  • CM2 – Financial Engineering and Loss Reserving
  • CB1 – Business Finance
  • CB2 – Business Economics

The Foundation Program can be completed by either studying an undergraduate actuarial degree at one of the eight accredited universities (seven in Australia and one in New Zealand), or by distance examination through the Institute and Faculty of Actuaries in the UK; or credit transfer from another actuarial society.

The seven accredited Australian Universities are

  • Australian National University
  • Bond University
  • Curtin University
  • Macquarie University
  • Monash University
  • University of Melbourne
  • University of New South Wales

The accredited New Zealand University is Victoria University of  Wellington.

Actuary Program consists of four subjects:

  • Actuarial Control Cycle
  • Data Analytics Principles
  • Asset and Liability Management
  • Communication, Modelling and Professionalism

The seven Australian universities above offer accredited education programs that cover two of the Actuary Program subjects (Actuarial Control Cycle and Data Analytics Principles). These programs are offered either as part of an undergraduate honours degree, as part of a post graduate qualification or as non-award subjects.

Fellowship Program

The Fellowship Program builds on the Foundation and Actuary Programs and teaches actuaries to apply their skills in specialist areas of practice. As the third stage of the overall Education program it is the part of your training that positions you to become an expert and a leader in your chosen field.

The Fellowship Program comprises three half-year modules. You can choose from 11 subject options within three modules depending on where you want to specialise.

Module 1: Choose one of the four options:

Module 2: Choose one of the four options:

Module 3: You can choose one of the following subjects after you have completed or attempted Module 1 and 2:

Some Module 3 subjects in the new Fellowship Program have prerequisites (students must have sat for the subject but not necessarily have passed the assessment), as follows:

  • Life Insurance Applications (Prerequisites: Life Insurance and Retirement Valuation, and Life Insurance and Retirement Product Development).
  • Retirement Applications (Prerequisite: Life Insurance and Retirement Product Development).
  • General and Health Insurance Applications (Prerequisites: General and Health Insurance Valuation, and General and Health Insurance Product Development).

It is important you check the course descriptions to ensure your Module 1 and 2 choices line up with your Module 3 preferences.

Practical Experience Requirement

Associate – To obtain Associate designation, you need to have completed and passed the Foundation Program and four Associateship subjects and have completed one year in a supervised, relevant work environment.
Fellow – Once you complete the Actuary Program, you can enter the Fellowship program. You must pass three Fellowship subjects to qualify (one subject from each Module) and complete one further year of supervised relevant work experience.

Further details on the practical requirements can be found here: https://actuaries.asn.au/education-program/practical-experience-requirement

Casualty Actuarial Society (CAS) – United States

Requirements to become an Associate of the Casualty Actuarial Society (ACAS)

1. CAS Exams

  • Exam 1 – Probability*
  • Exam 2 – Financial Mathematics*
  • Exam 3F – Financial Economics*
  • MAS-I – Modern Actuarial Statistics I
  • MAS-II – Modern Actuarial Statistics II
  • Exam 5 – Basic Techniques for Ratemaking and Estimating Claim Liabilities
  • Exam 6 – Regulation & Financial Reporting (Nation Specific)

Credits for Exams 1, 2 and 3F can also be obtained via exams taken with the following institutions:

  • Actuarial Society of South Africa
  • Actuaries Institute (Australia)
  • Institute of Actuaries of India
  • Institute and Faculty of Actuaries (U.K.)
  • Society of Actuaries

The CAS also recognizes the exam waivers granted by the Canadian Institute of Actuaries University Accreditation Program for Exams 1, 2 and 3F.

2. Validation by Educational Experience

  • Economics
  • Accounting and Finance

The VEE credits are provided based on the courses taken in University. In Malaysia, students can get VEE credits from the following universities (in alphabetical order):

  • Asia Pacific University of Technology/Innovation
  • HELP University
  • Heriot-Watt University Malaysia
  • International Islamic University Malaysia
  • Inti Education Group
  • Islamic Science University of Malaysia
  • KDU COLLEGE
  • Multimedia University
  • Quest International University – Perak
  • Sunway University
  • Taylor’s University
  • Taylor’s College
  • Tunku Abdul Rahman College
  • UCSI University
  • Universiti Kebangsaan Malaysia
  • Universiti Putra Malaysia
  • Universiti Teknologi MARA
  • Universiti Tunku Abdul Rahman Selangor
  • Universiti Utara Malaysia
  • University of Malaya

3. CAS Online Courses

  • CAS Online Course 1 : Risk Management and Insurance Operations
  • CAS Online Course 2 : Insurance Accounting, Coverage Analysis, Insurance Law and Insurance Regulations

Each of these Online Courses have a 2-hour Multiple Choice Questions exam.

4.  Course on Professionalism

Course on Professionalism – A two-day course to present candidates with real situations that contain ethical and professionalism issues for an actuary. Candidate must have finished either

  • 5 actuarial exams AND any 3 out of 4 non-exam requirement: online courses and 2 VEE subjects; or
  • any 6 actuarial exams

Note: For this eligibility prerequisite, the actuarial exams are : Exam 1, 2, 3F, MAS-I, MAS-II, 5 and 6.

Candidates who fulfill all requirements (1) to (4) will be eligible for the Associate of Casualty Actuarial Society (ACAS) designation.

Requirements to become Fellow of the Casualty Actuarial Society (FCAS)

1.  Completion of all requirements to become an Associate of Casualty Actuarial Society (ACAS).

2.  CAS Exams

  • Exam 7 – Estimation of Policy Liabilities, Insurance Company Valuation and Enterprise Risk Management
  • Exam 8 – Advanced Ratemaking
  • Exam 9 – Financial Risk and Rate of Return

The candidate will be eligible for the Fellow of Casualty Actuarial Society (FCAS) designation upon completing all of the above requirements.

Institute and Faculty of Actuaries (IFoA) – United Kingdom

Core Principles

Comprises of seven exam modules:

  • CS1 Actuarial Statistics
  • CS2 Risk Modelling and Survival Analysis
  • CM1 Actuarial Mathematics
  • CM2 Financial Engineering and Loss Reserving
  • CB1 Business Finance
  • CB2 Business Economics
  • CB3 Business Management

Students who joined the IFoA on or after 1 July 2020 must complete the new Stage 1 Professionalism Course before they can apply to sit the CB3 Exam. 

Core Practices 

Comprises of three exam modules:

  • CP1 Actuarial Practice
  • CP2 Modelling Practice
  • CP3 Communications Practice

Upon completion of the above and the Professionalism Course Stage 1 and Stage 2 (see below), the candidate may be admitted as Associate.

Specialist Principles

Requires completion of two Specialist Principles (SP) papers and one Specialist Advanced (SA) paper:

  • Specialist Principles subjects:
    • SP1 Health and Care
    • SP2 Life Insurance
    • SP4 Pensions and Other Benefits
    • SP5 Investment and Finance
    • SP6 Financial Derivatives
    • SP7 General Insurance Reserving and Capital Modelling
    • SP8 General Insurance Pricing
    • SP9 Enterprise Risk Management
  • Specialist Advanced subjects:
    • SA1 Health and Care
    • SA2 Life Insurance
    • SA3 General Insurance
    • SA4 Pensions and Other Benefits
    • SA5 Investment and Finance

Personal and Professional Development (PPD)

Practical experience requirement monitoring the development of the candidate in several key areas, supervised by an approved mentor. A minimum of three years’ actuarial work experience is required before being admitted to Fellowship.

Upon completion of the above, the candidate may be admitted as Fellow.

Professionalism Course 

Students who joined the IFoA before 1 July 2020:

  • (who have not already completed the previous style Professional Skills course(s) (Stage 1 and/or Stage 2)) will be required to complete the relevant Stage of the new Professionalism Courses.
  • must complete the new Stage 1 Professionalism Course before they can apply to sit the CB3 exam.
  • must complete both the new Stage 1 and Stage 2 Professionalism Courses before they will be eligible to qualify as an Associate.

Students or Newly Qualified Members who joined the IFoA before 1 March 2012:

  • are not required to do the Stage 1 Professionalism Course, but may opt to do so if they are required to complete the new Stage 2 Online Professionalism Course. This is being offered free of charge due to the substantial shift of content from the previous Stage 2 Professional Skills Course (PSC) to the new Stage 1 Professionalism Course.

Candidates wishing to obtain the Associate designation after February 2012 must complete the PSC prior to transferring to the category of Associate.

Candidates who qualify as a Fellow after February 2012 must complete the PSC within one year of qualification.

Exemptions

Candidates may obtain exemptions from some of the above examinations through university courses in UK:

  • City University, London
  • University of Kent, Canterbury
  • London School of Economics, London
  • Heriot-Watt University, Scotland

The list above is by no means exhaustive. Please refer to the UK Actuarial Profession website (www.actuaries.org.uk) for more information.

There also six universities in Malaysia offering IFoA exemptions:

  • Asia Pacific University
  • Heriot-Watt University, Malaysia
  • Sunway University
  • UCSI University
  • University of Malaya
  • University Teknologi MARA

UK Practice Modules

A multiple choice examination testing the candidate’s knowledge in the general principles of UK Financial Services, business practices, regulation, legislation and professional guidance notes. Not required to qualify as a Fellow, but required if practising in the UK in a reserved role.

Society of Actuaries (SOA) – United States

Requirements to become an Associate of the Society of Actuaries (ASA)

1. SOA Exams

  • Exam Financial Mathematics (FM)
  • Exam Probability (P)
  • Exam Investment and Financial Markets (IFM)
  • Exam Long-Term Actuarial Mathematics (LTAM)
  • Exam Short-Term Actuarial Mathematics (STAM)
  • Exam Statistics for Risk Modelling (SRM)
  • Exam Predictive Analytics (PA) [Project]

2. Validation by Educational Experience

  • Economics
  • Accounting and Finance
  • Mathematical Statistics

The VEE credits are provided based on the courses taken in University. In Malaysia, students can get VEE credits from the following universities (in alphabetical order):

  • Asia Pacific University of Technology/Innovation
  • HELP University
  • Heriot-Watt University Malaysia
  • International Islamic University Malaysia
  • Inti Education Group
  • Islamic Science University of Malaysia
  • KDU COLLEGE
  • Multimedia University
  • Quest International University – Perak
  • Sunway University
  • Taylor’s University
  • Taylor’s College
  • Tunku Abdul Rahman College
  • UCSI University
  • Universiti Kebangsaan Malaysia
  • Universiti Putra Malaysia
  • Universiti Teknologi MARA
  • Universiti Tunku Abdul Rahman Selangor
  • Universiti Utara Malaysia
  • University of Malaya

3. Fundamentals of Actuarial Practice (FAP)

FAP is a self-paced, e-Learning course composed of eight (8) modules where candidates acquire and use knowledge that is distributed and facilitated electronically. This course uses the Control Cycle as a practical problem-solving framework that applies to all aspects of actuarial work. The FAP includes two comprehensive written assessments (Interim Assessment and Final Assessment).

4. Associateship Professionalism Course (APC)

The APC is one-half day in length. The course covers professionalism, ethics and legal liability and makes extensive use of the case study method.

Candidates who fulfill all requirements (1) to (4) will be eligible for the Associate of Society of Actuaries (ASA) designation.

Requirements to become a Fellow of the Society of Actuaries (FSA)

1. Completion of all requirements to become an Associate of Society of Actuaries (ASA).

2. Completion of the requirements of one of the following specialty tracks:

  • Corporate Finance and ERM
  • Quantitative Finance and Investment
  • Individual Life Insurance and Annuities
  • Retirement Benefits
  • Group & Health Insurance
  • General Insurance

 These tracks include 3 or more examinations, and e-learning modules.

3. Decision Making and Communication Module (DMAC)

This module is one part of the Capstone Experience – the final component prior to Fellowship. There are e-Learning and project components. The focus of the Decision Making and Communication Module is on written and oral communication skills and decision-making skills as applied to solving business problems.

4. Fellowship Admissions Course (FAC)

This is the final requirement to attain the FSA designation, and can be taken any time after all other requirements have been completed. The course requires attendance and participation in all education sessions as well as successful completion of the oral presentation requirement.

Upon completion of all of the above, the candidate will obtain the title of Fellow of the SOA (FSA).