The Casualty Actuarial Society (CAS) credentials are highly respected in the property and casualty insurance industry. This guide will walk you through the journey from beginning actuary to Fellow of the Casualty Actuarial Society (FCAS), explaining each examination’s purpose and content. The CAS examination process is designed to ensure actuaries have both theoretical knowledge and practical skills needed for real-world insurance challenges.
Contents
Preliminary Examinations
The preliminary examinations establish fundamental mathematical and financial concepts that serve as building blocks for more advanced actuarial work. These exams are jointly administered with the Society of Actuaries (SOA).
Exam 1: Probability
This foundational exam tests your understanding of probability theory and its applications. The material covers probability concepts that you’ll use throughout your actuarial career, from basic definitions to complex probability distributions. Topics include:
The exam consists of 30 multiple-choice questions completed in three hours. Many candidates begin with this exam as it aligns well with college-level probability courses. The concepts you learn here will be essential for understanding risk modeling and frequency-severity analysis in later exams.
Exam 2: Financial Mathematics
Financial Mathematics introduces the time value of money and its applications in insurance. This exam builds your understanding of how money grows and how financial instruments work. You’ll learn about:
Understanding these concepts is crucial for pricing insurance policies and calculating reserves. The exam format mirrors Exam 1, with 30 multiple-choice questions in three hours. Most candidates take this exam either first or second in their journey.
Exam 3F: Models for Financial Economics
This exam explores more advanced financial concepts, particularly those relevant to insurance investments and financial risk. Key topics include:
The exam consists of 30 multiple-choice questions in three hours. Candidates typically take this after completing both Exam 1 and 2, as it builds upon concepts from both.
Associate Level Examinations
After completing the preliminary exams, candidates begin CAS-specific examinations focusing on property and casualty insurance concepts.
Exam MAS-I: Modern Actuarial Statistics I
This exam introduces statistical concepts specific to property and casualty insurance. You’ll learn about:
The exam is four hours long and combines multiple-choice and written-answer questions. This marks your first deep dive into casualty insurance-specific concepts.
Exam MAS-II: Modern Actuarial Statistics II
Building on MAS-I, this exam covers more advanced statistical methods used in property and casualty insurance. Topics include:
Like MAS-I, this is a four-hour exam combining multiple-choice and written-answer questions. The statistical methods learned here form the foundation of practical actuarial work in pricing and reserving.
Fellowship Examinations
The fellowship exams focus on applying actuarial concepts to real-world insurance problems. These exams are what truly distinguish casualty actuaries from other actuarial specialists.
Exam 5: Basic Techniques for Ratemaking and Estimating Claim Liabilities
This exam introduces the fundamental techniques used in property and casualty insurance pricing and reserving. You’ll learn how to:
This exam is particularly important as it covers the core skills needed by practicing casualty actuaries. The exam is four hours long and consists entirely of written-answer questions.
Exam 6: Regulation and Financial Reporting
This exam covers insurance company operations from a financial and regulatory perspective. Topics include:
The exam emphasizes understanding how actuarial work fits within the broader insurance company context. It’s a four-hour exam with written-answer questions.
Exam 7: Estimation of Policy Liabilities, Insurance Company Valuation, and Enterprise Risk Management
This advanced exam covers complex topics in insurance company management:
This exam helps prepare you for senior actuarial roles where you’ll need to understand the entire insurance operation. It’s a four-hour written-answer exam.
Exam 8: Advanced Ratemaking
The final exam focuses on sophisticated pricing techniques:
This challenging exam represents the culmination of your actuarial education. It’s a four-hour written-answer exam that tests your ability to apply advanced concepts to complex real-world situations.
Additional Requirements
Beyond examinations, CAS candidates must complete:
Course on Professionalism: A two-day seminar covering actuarial professionalism and ethics.
Validation by Educational Experience (VEE) in three areas:
- Economics
- Accounting and Finance
- Mathematical Statistics
Study Time and Preparation
Each exam typically requires 300-400 hours of study time. The journey from beginning to FCAS typically takes 6-8 years while working full-time. This timeline can vary significantly based on individual circumstances and study dedication.
The CAS provides study materials including:
- Detailed syllabi outlining required readings
- Sample questions and past exams
- Study notes for specific topics
Additionally, many third-party providers offer study manuals and practice exams. Most employers support actuarial candidates through study programs that include:
- Paid study time
- Coverage of exam fees
- Reimbursement for study materials
- Salary increases for passed exams
Success in the CAS examination process requires dedication, strong technical skills, and the ability to apply theoretical concepts to practical problems. Each exam builds upon previous knowledge, creating a comprehensive understanding of property and casualty actuarial science. The end result is a well-rounded actuary capable of handling the complex challenges of modern insurance markets.
