Choosing between the SOA (Society of Actuaries) and CAS (Casualty Actuarial Society) third exams is a pivotal moment for aspiring actuaries, especially when factoring in job offers and long-term career goals. Since the first two exams—Exam P (Probability) and Exam FM (Financial Mathematics)—are the same for both paths, the real decision point often comes when you’re ready to pick your third exam and, by extension, your specialty track. This choice isn’t just about passing exams; it’s about aligning your education with the career opportunities you want and the industry where you see yourself thriving.
When you get your first actuarial job offer, it can heavily influence which exam path to follow. For example, if your offer comes from a life insurance company, pension fund, or health benefits provider, the SOA path is the natural fit. The SOA exams focus on life, health, pension, and retirement benefits actuarial work. On the other hand, if you land a position at a property and casualty (P&C) insurance firm—think automobile, home, or business insurance—the CAS route will likely be the better choice because it specializes in P&C insurance, including pricing, reserving, and risk management[1][4].
If you don’t yet have a job offer and need to decide on the third exam, consider your career interests carefully. Are you fascinated by long-term insurance products and employee benefits? Or do you prefer the challenges of catastrophe modeling, loss reserving, and pricing in P&C insurance? Your passion for these topics can make a big difference in how motivated you’ll be throughout the demanding exam process. For instance, the SOA’s third exams typically cover topics like Fundamentals of Actuarial Mathematics (FAM) and Advanced Long-Term Actuarial Mathematics (ALTAM), whereas CAS’s third exams include Modern Actuarial Statistics I and II (MAS-I and MAS-II) and Exam 5, which focuses on ratemaking and reserving for property and casualty insurance[1][3][5].
Another practical way to choose is to look at the job market and your geographic location. In the U.S., it’s common for students to pass two or three exams before securing an actuarial job, so many advise waiting for a job offer before committing to the SOA or CAS path. Employers tend to expect candidates in P&C companies to pursue CAS exams, while life insurance and pension employers expect SOA exams. Starting down the “wrong” path can sometimes signal to employers that you might leave for a different sector, so aligning your third exam choice with your first job is a strong strategy[4].
Beyond job offers, consider your long-term career goals and lifestyle. The SOA path can lead to roles in consulting, government, or corporate environments focused on benefits and pensions, which may offer different work-life balance and career progression opportunities compared to CAS roles in P&C insurance companies, which can involve more technical pricing and risk modeling work. If you envision working in reinsurance or specialized risk analytics, CAS’s focus on property and casualty risks might suit you better[1][7].
Exam difficulty and pass rates are also worth weighing. CAS exams, especially at the associateship level, are known for their technical depth and can be more challenging due to the open-ended nature of questions, such as those on Exam 5, which has a pass rate around 39%. SOA exams also demand intense preparation but are sometimes seen as broader in scope, covering various actuarial topics beyond just insurance[5]. Knowing your learning style and study preferences can help you decide which path feels more manageable or appealing.
It’s important to remember that the actuarial profession is evolving. For example, recent changes in CAS exam requirements, such as the removal of Exam 3F and the introduction of new exams focusing on modern actuarial statistics, reflect shifts in industry demands and educational approaches[2][6]. Keeping an eye on these changes can help you choose a path that remains relevant and valued.
In practical terms, here’s some actionable advice for deciding between SOA and CAS third exams:
Evaluate your job offers: Let your first actuarial job guide your exam path. If your employer is in P&C insurance, start CAS exams; if in life, health, or pensions, start SOA exams.
Reflect on your career interests: Which insurance sector excites you? Property and casualty risks or life and health benefits?
Research industry demand: Look at job postings and talk to professionals in your network about which credential is preferred.
Consider exam format and content: Review sample exams and syllabi to see which style and topics suit your strengths.
Plan your study schedule: Both paths require significant study time (often 300+ hours per exam), so pick the path that aligns with your motivation and career goals.
In summary, choosing between the SOA and CAS third exams hinges largely on your current or prospective job and your personal career ambitions. If you can wait for a job offer, that decision often makes itself clear. Otherwise, think about what type of actuarial work you want to do and where you want to work. Aligning your exam path with those factors will set you up for success and a fulfilling career.