The preliminary exams are common for all aspiring actuaries no matter what field they decide to enter in the future. The ASP follows the SOA’s preliminary exam requirements for the associateship designation. You may view these in detail via the following link.
Exam P: Probability
Exam P is a three-hour multiple-choice examination being offered by the SOA through computer-based testing (CBT).
The syllabus for Exam P is set to develop the candidate’s knowledge of the fundamental probability tools for quantitatively assessing risk, with emphasis on the application of these tools to problems encountered in actuarial science. Thorough knowledge of calculus and basic probability topics is required.
Exam FM: Financial Mathematics
Exam FM is a three–hour multiple–choice examination and is offered via computer-based testing (CBT).
The syllabus for Exam FM develops the candidate’s understanding of the fundamental concepts of financial mathematics, and how those concepts are applied in calculating present and accumulated values for various streams of cash flows as a basis for future use in: reserving, valuation, pricing, asset/liability management, investment income, capital budgeting and valuing contingent cash flows. A basic knowledge of calculus and an introductory knowledge of probability is assumed.
Exam IFM: Investment and Financial Markets
The IFM Exam is a three-hour exam that consists of 30 multiple-choice questions. It is offered via computer–based testing (CBT).
The syllabus for Exam IFM develops the candidate’s knowledge of the theoretical basis of corporate finance and financial models and the application of those models to insurance and other financial risks. A thorough knowledge of calculus, probability (as covered in Exam P), basic corporate finance (as covered in VEE Accounting and Corporate Finance) and interest theory (as covered in Exam FM) is assumed.
Exam LTAM: Long-Term Actuarial Mathematics
The LTAM exam will consist of four hours of multiple-choice and written answer questions. A 15 minute read-through time will be given prior to the start of the exam. No writing is allowed during the read-through time.
The syllabus for Exam LTAM develops the candidate’s knowledge of the theoretical basis of contingent payment models and the application of those models to insurance and other financial risks. A thorough knowledge of calculus, probability (as covered in Exam P), mathematical statistics (as covered in VEE Mathematical Statistics) and interest theory (as covered in Exam FM) is assumed.
Exam STAM: Short-term Actuarial Mathematics
The STAM exam is a three-and-a-half hour exam that consists of 35 multiple-choice questions. It is offered via computer–based testing (CBT).
The syllabus for Exam STAM provides an introduction to modeling and covers important actuarial methods that are useful in modeling. The candidate will be introduced to useful frequency and severity models, required to understand the steps involved in the modeling process including determining a suitable model, estimating parameters, and providing measures of confidence. Candidates will also be able to work with aggregate models, credibility models, and understand basic methods of pricing and reserving for short-term insurance coverages. A thorough knowledge of calculus, probability (as covered in Exam P) and mathematical statistics (as covered in VEE Mathematical Statistics) is assumed.
Exam SRM: Statistics for Risk Modeling
The SRM exam is a three and one-half hour exam that consists of 35 multiple-choice questions. It is offered via computer–based testing (CBT).
The syllabus for Exam SRM provides an introduction to methods and models for analyzing data. Candidates will be familiar with regression models (including the generalized linear model), time series models, principal components analysis, decision trees, and cluster analysis. Candidates will also be able to apply methods for selecting and validating models. A thorough knowledge of calculus, probability (as covered in Exam P) and mathematical statistics (as covered in VEE Mathematical Statistics) is assumed.
Exam PA: Predictive Analytics
The PA Exam is administered as a five-hour and 15-minute project requiring analysis of a data set in the context of a business problem and submission of a report.
The syllabus for Exam SRM provides an introduction to methods and models for analyzing data. Candidates will be familiar with regression models (including the generalized linear model), time series models, principal components analysis, decision trees, and cluster analysis. Candidates will also be able to apply methods for selecting and validating models. A thorough knowledge of calculus, probability (as covered in Exam P) and mathematical statistics (as covered in VEE Mathematical Statistics) is assumed.
