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Between the two organizations, which came to have some overlap in membership, the number of recognized professional actuaries climbed from the initial 38 to over 1000 by the time the two organizations merged in 1949 to form the SOA. The SOA has seen continued growth since then, now recognizing over 30,000 professional actuaries as active members.
Between the two organizations, which came to have some overlap in membership, the number of recognized professional actuaries climbed from the initial 38 to over 1000 by the time the two organizations merged in 1949 to form the SOA. The SOA has seen continued growth since then, now recognizing over 30,000 professional actuaries as active members.


==Leadership structure==
== Society structure ==
=== Leadership ===
The SOA is headed by a [[board of directors]], consisting of a president, president-elect, and fifteen other board members.<ref>[http://www.soa.org/files/soa/bylaws-soa.pdf SOA Bylaws]</ref> In addition, the most recent past president is a member of the board.
The SOA is headed by a [[board of directors]], consisting of a president, president-elect, and fifteen other board members.<ref>[http://www.soa.org/files/soa/bylaws-soa.pdf SOA Bylaws]</ref> In addition, the most recent past president is a member of the board.


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The employees of the SOA are headed by the chief executive officer, a salaried position appointed by the board of directors.
The employees of the SOA are headed by the chief executive officer, a salaried position appointed by the board of directors.


===SOA Elections===
=== Elections ===
The SOA holds its elections annually in late summer or early fall for its board of directors and the Section Councils. In the board of directors election, one president-elect, and six elected board members are elected each year. Elected board members serve three–year terms. The president–elect serves three one–year terms as president–elect, president and past president.
The SOA holds its elections annually in late summer or early fall for its board of directors and the Section Councils. In the board of directors election, one president-elect, and six elected board members are elected each year. Elected board members serve three–year terms. The president–elect serves three one–year terms as president–elect, president and past president.


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According to the SOA Bylaws, fellows and associates who have been members of the society for five years or more are entitled to vote in the board of directors' election. According to the Section Bylaws, all members of a Section are entitled to vote in the Section Council election. This includes ASAs, FSAs, and members of co–sponsoring organizations who are also members of a Section. SOA members with valid e–mail addresses in the SOA database are sent login credentials to vote online. Members without valid email addresses, or who notify the SOA of their request, receive paper ballots.
According to the SOA Bylaws, fellows and associates who have been members of the society for five years or more are entitled to vote in the board of directors' election. According to the Section Bylaws, all members of a Section are entitled to vote in the Section Council election. This includes ASAs, FSAs, and members of co–sponsoring organizations who are also members of a Section. SOA members with valid e–mail addresses in the SOA database are sent login credentials to vote online. Members without valid email addresses, or who notify the SOA of their request, receive paper ballots.


==Membership==
=== Membership ===
The society's members are involved in the [[Life insurance|life]], [[health insurance|health]], [[pension]] and [[Casualty insurance|general insurance]] areas of the actuarial profession.
The society's members are involved in the [[Life insurance|life]], [[health insurance|health]], [[pension]] and [[Casualty insurance|general insurance]] areas of the actuarial profession.
{|class=wikitable
{|class=wikitable
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Members of the SOA who meet a professional experience requirement are eligible for membership in the [[American Academy of Actuaries]], which represents United States actuaries from all practice areas.<ref>{{Cite web|url=http://www.actuary.org/content/how-apply-membership-0#3|title=Apply for Membership {{!}} American Academy of Actuaries|website=www.actuary.org|access-date=2018-07-14}}</ref>
Members of the SOA who meet a professional experience requirement are eligible for membership in the [[American Academy of Actuaries]], which represents United States actuaries from all practice areas.<ref>{{Cite web|url=http://www.actuary.org/content/how-apply-membership-0#3|title=Apply for Membership {{!}} American Academy of Actuaries|website=www.actuary.org|access-date=2018-07-14}}</ref>


===Examination system===
== Education system ==
Professional designations in the Society are earned by completing a rigorous system of [[Actuarial exam|examinations]]. It is common for actuarial students to work full-time in the profession while studying for the exams.
Professional designations in the Society are earned by completing a rigorous system of education including [[Actuarial credentialing and exams|examinations]], validations, and [[Distance education|e-learning modules]]. It is common for actuarial students to work full-time in the profession while studying for the exams.

⚫
The first seven ("preliminary") exams consist mostly of core mathematics related to actuarial science including [[probability]], [[statistics]], [[interest]] theory, life contingencies, and risk models.<ref>{{Cite web|url=http://www.soa.org/education/exam-req/edu-asa-req.aspx|title=Associate of the Society of Actuaries (ASA)|website=www.soa.org|access-date=2018-07-14}}</ref>


=== Preliminary exams ===
⚫
The first six to seven exams (preliminary exams) consist mostly of core mathematics related to actuarial science including [[probability]], [[interest]] theory, life contingencies, risk models, [[Statistical model|statistical modeling]], and [[predictive analytics]].<ref>{{Cite web|url=http://www.soa.org/education/exam-req/edu-asa-req.aspx|title=Associate of the Society of Actuaries (ASA)|website=www.soa.org|access-date=2018-07-14}}</ref>
{|class=wikitable style="text-align:center;"
{|class=wikitable style="text-align:center;"
!Exam code!!Exam title!!Format!!Tests per year!!Pass/fail estimate
!Exam code!!Exam title!!Format!!Tests per year!!Pass/fail estimate
Line 91: Line 92:
|'''PA'''||align=left|Predictive Analytics||Written-answer||2||No
|'''PA'''||align=left|Predictive Analytics||Written-answer||2||No
|-
|-
|colspan=5 align=left|{{small|Note: Candidate can choose one from '''ALTAM''' and '''ASTAM''' to fulfill the education requirement.}}
|colspan=5 align=left|{{small|Note: Candidate can fulfill the education requirement by passing '''ALTAM''' or '''ASTAM'''.}}
|}
|}
Preliminary exams administered on computers at [[Prometric]] testing centers. The scores are reported in a scale of 0 to 10 in the transcript.The score is referred to the actual passing percentage <math>P</math> to the following scale.
{|class=wikitable style="text-align:center;"
!Range
|<0.5P||0.5P–0.6P||0.6P–0.7P||0.7P–0.8P||0.8P–0.9P||0.9P–P
|P–1.1P||1.1P–1.2P||1.2P–1.3P||1.3P–1.4P||>1.4P
|-
!Score
|'''0'''||'''1'''||'''2'''||'''3'''||'''4'''||'''5'''||'''6'''||'''7'''||'''8'''||'''9'''||'''10'''
|-
!Result
|colspan=6|'''Fail'''||colspan=5|'''Pass'''
|}
If <math>P>\frac{100}{1.4}\% \approx 71.4\%</math>, then <math>1.4P > 100\%</math>, i.e. the requirement for the percentage of score to get grade 10 will be higher than <math>100\%</math>. That is, grade 10 is unachievable. Hence, the highest grade achievable can be 9 for a test.


In 2016, the SOA announced changes to the curriculum for candidates seeking the associate designation and the Chartered Enterprise Risk Analyst credential. In total, the number of components for Associateship from the SOA will increase from ten to twelve components, with three VEE subjects, seven formally examined subjects. These changes are in effect July 2018<ref>{{Cite web|title=ASA & CERA Curriculum Changes {{!}} SOA|url=https://www.soa.org/curriculumchanges|access-date=2021-10-09|website=www.soa.org}}</ref> and reflect an emphasis on [[predictive analytics]], and also provides a curriculum balance between long-term and short-term insurance coverages.
The current form of preliminary exams were established in year 2000 and evolved over time. Significant changes were introduced in 2005 and 2007 to introduce the new education components of Validation by Educational Experience (VEE) and Fundamentals of Actuarial Practice (FAP) learning modules. In 2018 and 2023, the preliminary exams have undergone another wave of significant changes to reflect an emphasis on [[predictive analytics]], and also provides a curriculum balance between long-term and short-term insurance coverages. <ref>{{Cite web|title=ASA & CERA Curriculum Changes {{!}} SOA|url=https://www.soa.org/curriculumchanges|access-date=2021-10-09|website=www.soa.org}}</ref> The rough equivalent of preliminary exams since year 2000 are listed according to the transition rules published by SOA. There are also differences in detail between exam syllabus over time.

{|class=wikitable style="text-align:center;"
{|class=wikitable style="text-align:center;"
!2000 / 2005 Syllabus!!2007 Syllabus!!2018 Syllabus!!2023 Syllabus
!2000 / 2005 Syllabus!!2007 Syllabus!!2018 Syllabus!!2023 Syllabus
Line 121: Line 134:
|}
|}


=== Other components ===
⚫
A series of online learning modules, called the Fundamentals of Actuarial Practice (FAP), are intended to be taken after the preliminary exams. They cover real-world topics such as [[insurance]] and professionalism with readings, case studies and projects.<ref>{{Cite web|url=http://www.soa.org/education/exam-req/syllabus-study-materials/edu-fap-overview.aspx|title=FAP Overview|website=www.soa.org|access-date=2018-07-14}}</ref> The preliminary exams and FAP modules comprise the majority of the education requirement for the ASA designation.
In addition to the exams, candidate would also need to complete the additional education requirement such as Validation by Educational Experience (VEE) and a series of e-learning modules.

The Validation by Educational Experience (VEE) is the additional topics covered by actuarial education. However, they can be validated by completing approved university courses instead of closed-book exams.
* The VEE was introduced in 2005 with 3 subjects: [[Statistics|Applied statistical methods]], [[Corporate finance]], and [[Economics]].
* In 2018, the 3 subjects were amended as: [[Accounting]] and [[finance]], [[Economics]], and [[Mathematical statistics]].


⚫
A series of online learning modules are intended to be taken with the preliminary exams. The Fundamentals of Actuarial Practice (FAP) were introduced in 2007 to cover real-world topics such as [[insurance]] and professionalism with readings, case studies and projects. <ref>{{Cite web|url=http://www.soa.org/education/exam-req/syllabus-study-materials/edu-fap-overview.aspx|title=FAP Overview|website=www.soa.org|access-date=2018-07-14}}</ref> In 2023, more e-learning modules were added to the education requirement as a part of educational pathway redesign.
{|class=wikitable
{|class=wikitable
!Module code!!Module title!!Format
!Module code!!Module title!!Format
Line 137: Line 156:
|}
|}


=== Fellowship exams ===
Upper-level exam topics for the FSA designation include plan design, risk classification, enterprise risk management, ratemaking and valuation. Three fellowship exams are taken in one of six specialization tracks chosen by the candidate – Finance & Enterprise Risk Management, Investments, Individual Life Insurance & Annuities, Retirement Benefits, Group & Health Insurance, or General Insurance. The SOA is updating the Fellowship tracks beginning in late 2018.<ref>{{Cite web|title=FSA Changes {{!}} SOA|url=https://www.soa.org/curriculum-changes/fsa-track-changes/|access-date=2021-10-09|website=www.soa.org}}</ref> Candidates completing the Finance & Enterprise Risk Management track will also earn the CERA designation. Candidates in any of the other five tracks have the option of replacing their track-specific Enterprise Risk Management exam with a more generalized ERM exam in order to obtain the CERA designation in addition to FSA.<ref>{{Cite web|url=http://www.soa.org/education/exam-req/edu-fsa-req-2013.aspx|title=Fellow of the Society of Actuaries (FSA)|website=www.soa.org|access-date=2018-07-14}}</ref>
Upper-level exam topics for the FSA designation include plan design, risk classification, enterprise risk management, ratemaking and valuation. Three fellowship exams are taken in one of six specialization tracks chosen by the candidate – Finance & Enterprise Risk Management, Investments, Individual Life Insurance & Annuities, Retirement Benefits, Group & Health Insurance, or General Insurance. The SOA is updating the Fellowship tracks beginning in late 2018.<ref>{{Cite web|title=FSA Changes {{!}} SOA|url=https://www.soa.org/curriculum-changes/fsa-track-changes/|access-date=2021-10-09|website=www.soa.org}}</ref> Candidates completing the Finance & Enterprise Risk Management track will also earn the CERA designation. Candidates in any of the other five tracks have the option of replacing their track-specific Enterprise Risk Management exam with a more generalized ERM exam in order to obtain the CERA designation in addition to FSA.<ref>{{Cite web|url=http://www.soa.org/education/exam-req/edu-fsa-req-2013.aspx|title=Fellow of the Society of Actuaries (FSA)|website=www.soa.org|access-date=2018-07-14}}</ref>


Revision as of 03:08, 19 June 2023

Society of Actuaries
AbbreviationSOA
Formation1949
TypeProfessional association
HeadquartersSchaumburg, Illinois
Location
Membership
31,323 in 2018[1]
Official language
English
CEO
Greg Heidrich
Websitesoa.org

The Society of Actuaries (SOA) is a global professional organization for actuaries. It was founded in 1949 as the merger of two major actuarial organizations in the United States: the Actuarial Society of America and the American Institute of Actuaries.[2] It is a full member organization of the International Actuarial Association.[3]

Through education and research, the SOA advances actuaries as leaders in measuring and managing risk to improve financial outcomes for individuals, organizations, and the public. The SOA's vision is for actuaries to be highly sought-after professionals who develop and communicate solutions for complex financial issues. The SOA provides primary and continuing education for students and practicing actuaries, maintains high professional standards for actuaries, and conducts research on actuarial trends and public policy issues.

A global organization, the SOA represents actuaries from all major areas of practice, including life and health insurance, retirement and pensions, investment and finance, enterprise risk management, and general insurance (property and casualty) insurance.[4] The Casualty Actuarial Society also represents actuaries working with property and casualty.

The SOA, along with its public relations firm Golin, won the PRWeek Corporate Branding Campaign of the Year award for 2008. The award was given for the SOA's efforts to revitalize the actuarial profession's brand in the U.S., including the slogan "Risk is Opportunity."[5]

History

The Society was founded as a merger of two major American actuarial associations, as reflected in its logo: the Actuarial Society of America (ASA) and the American Institute of Actuaries (AIA).

Shot of an old diploma issued by the AIA

The Actuarial Society of America was the first actuarial professional association in North America, founded in 1889 with only 38 members and headquartered in New York City.[6] Initial members were included by invitation, but the organization soon adopted a system of examination for qualification, with the first Fellow to qualify via exams joining in 1900.

The American Institute of Actuaries was founded in 1909. Based in Chicago, it attracted members from life insurance companies in the midwestern and southern United States. The formation of the AIA, which (like the ASA) was geared toward actuaries in the field of life insurance, was followed within the decade by the creation of two other specialized actuarial organizations: the Casualty Actuarial Society, which still exists today, and the Fraternal Actuarial Association which dissolved in 1980.

Between the two organizations, which came to have some overlap in membership, the number of recognized professional actuaries climbed from the initial 38 to over 1000 by the time the two organizations merged in 1949 to form the SOA. The SOA has seen continued growth since then, now recognizing over 30,000 professional actuaries as active members.

Society structure

Leadership

The SOA is headed by a board of directors, consisting of a president, president-elect, and fifteen other board members.[7] In addition, the most recent past president is a member of the board.

The board positions are filled by election. A member of the society is eligible to vote in board elections if they have the title of FSA, or if they have held the title of ASA for at least five years, and only FSAs can be elected to the board. (See the Membership section below for information on the professional titles granted by the society.) Regular board members are elected for terms of three years. The president-elect is elected for a term of one year, after which he or she becomes the president for a term of one year.

The employees of the SOA are headed by the chief executive officer, a salaried position appointed by the board of directors.

Elections

The SOA holds its elections annually in late summer or early fall for its board of directors and the Section Councils. In the board of directors election, one president-elect, and six elected board members are elected each year. Elected board members serve three–year terms. The president–elect serves three one–year terms as president–elect, president and past president.

In section elections, generally one third of the council is elected each year as members serve three–year terms. Section councils select their officers (chair, vice chair, and secretary/treasurer).

According to the SOA Bylaws, fellows and associates who have been members of the society for five years or more are entitled to vote in the board of directors' election. According to the Section Bylaws, all members of a Section are entitled to vote in the Section Council election. This includes ASAs, FSAs, and members of co–sponsoring organizations who are also members of a Section. SOA members with valid e–mail addresses in the SOA database are sent login credentials to vote online. Members without valid email addresses, or who notify the SOA of their request, receive paper ballots.

Membership

The society's members are involved in the life, health, pension and general insurance areas of the actuarial profession.

Level Requirements
Fellow Achieved designation Fellow of the Society of Actuaries (FSA)
Associate Achieved designation Associate of the Society of Actuaries (ASA), or
Achieved designation Chartered Enterprise Risk Analyst (CERA)
Professional Affiliate Completed micro-credential Actuarial Science Foundations, or
Completed micro-credential Data Science for Actuaries
Affiliate Anyone with interest in the actuarial profession

There are three designations offered by the SOA. The two Associate-level designations are Associate of Society of Actuaries (ASA) and Chartered Enterprise Risk Analyst (CERA), which was introduced in 2007. The highest designation is Fellow of the Society of Actuaries (FSA). The SOA has more than 30,000 actuaries as members. The 3 micro-credentials and affiliate membership was introduced in 2022.

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. Non-members working in the actuarial profession and taking exams are often referred to as actuarial students or candidates.

Members of the SOA who meet a professional experience requirement are eligible for membership in the American Academy of Actuaries, which represents United States actuaries from all practice areas.[8]

Education system

Professional designations in the Society are earned by completing a rigorous system of education including examinations, validations, and e-learning modules. It is common for actuarial students to work full-time in the profession while studying for the exams.

Preliminary exams

The first six to seven exams (preliminary exams) consist mostly of core mathematics related to actuarial science including probability, interest theory, life contingencies, risk models, statistical modeling, and predictive analytics.[9]

Exam code Exam title Format Tests per year Pass/fail estimate
P Probability Multiple-choice 6 Yes
FM Financial Mathematics Multiple-choice 6 Yes
FAM Fundamentals of Actuarial Mathematics Multiple-choice 3 No
SRM Statistics for Risk Modeling Multiple-choice 3 No
ALTAM Advanced Long-Term Actuarial Mathematics Written-answer 2 No
ASTAM Advanced Short-Term Actuarial Mathematics Written-answer 2 No
PA Predictive Analytics Written-answer 2 No
Note: Candidate can fulfill the education requirement by passing ALTAM or ASTAM.

Preliminary exams administered on computers at Prometric testing centers. The scores are reported in a scale of 0 to 10 in the transcript.The score is referred to the actual passing percentage to the following scale.

Range <0.5P 0.5P–0.6P 0.6P–0.7P 0.7P–0.8P 0.8P–0.9P 0.9P–P P–1.1P 1.1P–1.2P 1.2P–1.3P 1.3P–1.4P >1.4P
Score 0 1 2 3 4 5 6 7 8 9 10
Result Fail Pass

If , then , i.e. the requirement for the percentage of score to get grade 10 will be higher than . That is, grade 10 is unachievable. Hence, the highest grade achievable can be 9 for a test.

The current form of preliminary exams were established in year 2000 and evolved over time. Significant changes were introduced in 2005 and 2007 to introduce the new education components of Validation by Educational Experience (VEE) and Fundamentals of Actuarial Practice (FAP) learning modules. In 2018 and 2023, the preliminary exams have undergone another wave of significant changes to reflect an emphasis on predictive analytics, and also provides a curriculum balance between long-term and short-term insurance coverages. [10] The rough equivalent of preliminary exams since year 2000 are listed according to the transition rules published by SOA. There are also differences in detail between exam syllabus over time.

2000 / 2005 Syllabus 2007 Syllabus 2018 Syllabus 2023 Syllabus
Course 1 / Exam P
(Probability)		 Exam P
(Probability) 		Exam P
(Probability)		 Exam P
Course 2 / Exam FM
(Financial Mathematics)		 Exam FM
(Financial Mathematics) 		Exam FM
(Financial Mathematics)		 Exam FM
Course 3 / Exam M
(Actuarial Models) 		Exam MFE
(Models for Financial Economics) 		Exam IFM
(Investment and Financial Markets)		 —
Exam MLC
(Models for Life Contingencies)		 Exam LTAM
(Long-Term Actuarial Mathematics) 		Exam FAM
Exam ALTAM
Exam ASTAM
Course 4 / Exam C
(Construction and Evaluation
of Actuarial Models) 		Exam C
(Construction and Evaluation
of Actuarial Models) 		Exam STAM
(Short-Term Actuarial Mathematics)
— — Exam SRM
(Statistics for Risk Modeling)		 Exam SRM
— — Exam PA
(Predictive Analytics)		 Exam PA

Other components

In addition to the exams, candidate would also need to complete the additional education requirement such as Validation by Educational Experience (VEE) and a series of e-learning modules.

The Validation by Educational Experience (VEE) is the additional topics covered by actuarial education. However, they can be validated by completing approved university courses instead of closed-book exams.

A series of online learning modules are intended to be taken with the preliminary exams. The Fundamentals of Actuarial Practice (FAP) were introduced in 2007 to cover real-world topics such as insurance and professionalism with readings, case studies and projects. [11] In 2023, more e-learning modules were added to the education requirement as a part of educational pathway redesign.

Module code Module title Format
PAF Pre-Actuarial Foundations e-learning module
ASF Actuarial Science Foundations e-learning module
ATPA Advanced Topics in Predictive Analytics e-learning module and a final assessment
FAP Fundamentals of Actuarial Practice e-learning course with 5 modules and a final assessment
APC Associateship Professionalism Course online or in-person meeting

Fellowship exams

Upper-level exam topics for the FSA designation include plan design, risk classification, enterprise risk management, ratemaking and valuation. Three fellowship exams are taken in one of six specialization tracks chosen by the candidate – Finance & Enterprise Risk Management, Investments, Individual Life Insurance & Annuities, Retirement Benefits, Group & Health Insurance, or General Insurance. The SOA is updating the Fellowship tracks beginning in late 2018.[12] Candidates completing the Finance & Enterprise Risk Management track will also earn the CERA designation. Candidates in any of the other five tracks have the option of replacing their track-specific Enterprise Risk Management exam with a more generalized ERM exam in order to obtain the CERA designation in addition to FSA.[13]

See also

References

  1. ^ Total SOA Membership
  2. ^ SOA – Society of Actuaries – Historical Background
  3. ^ About – Members_Full (En)
  4. ^ "General Insurance Fellowship Track". www.soa.org. Retrieved 2018-07-14.
  5. ^ "Corporate Branding Campaign of the Year 2008," PR Week, March 06, 2008
  6. ^ "Historical Background". soa.org. Retrieved 2018-07-14.
  7. ^ SOA Bylaws
  8. ^ "Apply for Membership | American Academy of Actuaries". www.actuary.org. Retrieved 2018-07-14.
  9. ^ "Associate of the Society of Actuaries (ASA)". www.soa.org. Retrieved 2018-07-14.
  10. ^ "ASA & CERA Curriculum Changes | SOA". www.soa.org. Retrieved 2021-10-09.
  11. ^ "FAP Overview". www.soa.org. Retrieved 2018-07-14.
  12. ^ "FSA Changes | SOA". www.soa.org. Retrieved 2021-10-09.
  13. ^ "Fellow of the Society of Actuaries (FSA)". www.soa.org. Retrieved 2018-07-14.

External links

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