Exam Sequencing: Which Actuarial Exam to Take First
Guidance on choosing the optimal order for taking actuarial exams based on your background and career goals.
The Standard Path for Preliminary Exams
Most candidates begin their actuarial exam journey with either Exam P (Probability) or Exam FM (Financial Mathematics). These two exams form the foundation of both the SOA and CAS credential tracks, and passing them is the first milestone in establishing yourself as a serious actuarial candidate. The order between them does not matter significantly for your career progression, so choose based on your current strengths and coursework.
Exam P is ideal if your strength is calculus-based probability. The exam covers topics including general probability concepts, univariate and multivariate random variables, conditional probability and expectations, and common distributions. If you have recently completed a probability course in college, taking Exam P while the material is fresh reduces your total study time substantially.
Exam FM suits candidates more comfortable with financial math and interest theory. It covers time value of money, annuities, loans, bonds, and basic financial derivatives. Students who have taken a course in financial mathematics or corporate finance will find significant overlap with the exam content. Exam FM also has the advantage of being more directly calculator-driven, which some candidates find easier to study for because practice problems have clear, numerical answers.
After P and FM: Choosing Your Next Exams
After passing P and FM, the typical next step depends on which credential track you are pursuing. For SOA candidates, Exam FAM (Fundamentals of Actuarial Mathematics) covers short-term and long-term actuarial models and is a substantial exam that requires significant preparation. Exam SRM (Statistics for Risk Modeling) covers regression, time series, and principal components, drawing heavily on statistical methods. The order between FAM and SRM is flexible, but many candidates take SRM first because it is shorter and builds on the statistical foundation from Exam P.
For CAS candidates, the path diverges with Exam MAS-I (Modern Actuarial Statistics I) and Exam MAS-II (Modern Actuarial Statistics II), which cover statistical and predictive modeling methods specific to property and casualty insurance applications. These exams replace the older Exam S and portions of STAM for the CAS track.
Strategic Considerations for Students
Pass at least two exams before your first internship application to be competitive. Most actuarial employers expect internship candidates to have passed P and FM, or at minimum one of the two with the other scheduled. Having two exams passed distinguishes you from candidates who have passed only one and demonstrates consistent progress. Some highly competitive employers or programs may expect three exams for full-time positions.
If you are deciding between the SOA and CAS tracks, know that exams P and FM apply to both organizations. This means you do not need to decide between tracks until after passing these two exams. Once you pass track-specific exams like FAM (SOA) or MAS-I (CAS), switching tracks becomes harder because the exams do not transfer between organizations. If you are unsure which track to pursue, use the P and FM study period to research both options through informational interviews, internship experiences, and industry reading.
Aligning Exams with Coursework
Consider taking exams that align with courses you are currently taking in school since the overlap reduces total study time significantly. If you are enrolled in a probability course, schedule Exam P for the end of that semester. If you are taking a course in interest theory or financial mathematics, schedule Exam FM accordingly. The synergy between coursework and exam preparation can save 50 to 100 hours of study time compared to studying the material independently.
This alignment strategy extends beyond the preliminary exams. If you are taking a regression analysis course, it may be an ideal time to study for Exam SRM. If your curriculum includes an insurance models or actuarial mathematics course, use that foundation for Exam FAM preparation. Map out your remaining semesters against the exam sequence to identify the best windows for each exam.
Career Changers: Front-Loading Exams
Career changers entering actuarial science from other fields should front-load the preliminary exams to demonstrate commitment to employers as quickly as possible. Employers use exam progress as a primary screening criterion for entry-level actuarial positions. A career changer with two passed exams and relevant analytical work experience is a competitive candidate, while a career changer with no exams, regardless of their other qualifications, will struggle to get interviews.
The most efficient approach for career changers is to pass Exam P and Exam FM before or during the early stages of their job search. This typically takes six to twelve months of dedicated study, depending on mathematical background. Career changers with strong quantitative backgrounds in fields like engineering, physics, or economics often find the material accessible, while those from less quantitative fields may need additional foundational study.
Avoiding Common Sequencing Mistakes
A common mistake is waiting too long between exams. Momentum matters in the actuarial exam process. If you pass Exam P in January and do not attempt Exam FM until the following January, you lose a full year of progress. Aim to sit for an exam every three to six months to maintain your study habits and demonstrate consistent forward progress to employers.
Another mistake is attempting upper-level exams before solidifying your foundation in the preliminary material. The upper-level exams build directly on concepts from P, FM, SRM, and FAM. If you barely passed a preliminary exam, the gaps in your understanding will compound when you encounter the same material at a higher level. It is better to pass each exam with solid understanding than to rush through the sequence with marginal knowledge at each stage.
Finally, do not ignore the non-exam requirements such as VEE credits, FAP modules (SOA), or online courses (CAS). These requirements have lead times and deadlines that can catch you off guard. Plan to complete them concurrently with your exam sequence rather than leaving them all for the end, where they can delay your designation by months.