Which Actuarial Exam Should I Start With? The Essential Guide for Beginners

You’ve decided on the demanding, rewarding actuary career path. Now comes the biggest hurdle for every aspirant: ” Which actuarial exam should start with ?” This single question stalls more aspiring actuaries than any complex math problem.

The truth is, there’s no single perfect starting point. The best first actuarial exam depends entirely on three factors:

1. Your chosen Actuarial Body (SOA/CAS or IFoA).
2. Your academic background (Math, Finance, or Engineering).
3. Your comfort level with either mathematical statistics or financial theory.

This guide will solve that problem for you. By the end, you will know precisely where to begin your actuarial studies and build crucial momentum.

The journey to becoming a credentialed actuary is governed by rigorous professional bodies. Your first step depends on the region and the body you plan to qualify through.

• SOA / CAS: Primarily based in the U.S., but credentials are highly respected globally. The Society of Actuaries (SOA) focuses on Life, Health, and Pensions. The Casualty Actuarial Society (CAS) focuses on Property & Casualty (P&C) insurance.
• IFoA: Based in the U.K., the Institute and Faculty of Actuaries is widely recognized, especially in India, Australia, and many Commonwealth nations.

Crucially, the initial exams for all bodies test foundational knowledge in probability, financial mathematics, and statistics. You must clear these early exams to unlock internships and entry-level jobs.

The SOA/CAS route starts with two main preliminary exams: Exam P (Probability) and Exam FM (Financial Mathematics). Many students ask, “SOA Exam P vs FM—which is easier?” The answer is subjective.

The Math-Heavy Opener

Exam P is the classic choice for math gurus. It tests your fundamental understanding of probability concepts.

• Topics Covered: Probability set functions, Discrete and Continuous Random Variables, Expected Value, Variance, and Common Probability Distributions (e.g., Binomial, Poisson, Normal).
• Why choose it first: If you recently aced a college-level calculus or probability course, the concepts will still be fresh. It leverages your strong analytical and problem-solving skills immediately.

Who should start with Exam P: Students from Engineering, Mathematics, Physics, or Statistics backgrounds

The Finance-Focused Start

Exam FM tests concepts from the time value of money (TVM). It feels less abstract than pure probability.

• Topics Covered: Interest Theory (Simple/Compound), Annuities (Due/Immediate), Loans, Bonds, and Basic Derivatives.
• Why many consider FM easier: The math relies less on advanced calculus. The concepts relate directly to real-world finance, making them intuitive for some students.
• Who should start with FM: B.Com, Economics, CFA aspirants, or Finance graduates?

Final Guidance for SOA/CAS

You must take both exams eventually. Don’t stress the order! Start with the subject you feel most confident in. Getting a pass early on builds irreplaceable confidence and study discipline, setting the right tone for your long-term actuarial exam study plan

The IFoA’s Core Principles phase begins with three groups of exams: Actuarial Statistics (CS), Actuarial Mathematics (CM), and Business (CB). For the first exam, focus on CS1 or CM1.

The Statistical Foundation

CS1 covers fundamental statistical principles essential for all actuarial work.

• Topics Covered: Probability distributions, Statistical inference (estimation and hypothesis testing), and an introduction to generalized linear models.
• Good for: Students from Math-heavy backgrounds who are comfortable with proofs and rigorous statistical methods. This is the closest equivalent to the SOA’s Exam P.

The Life & Finance Core

CM1 is the longest and broadest of the Core Principles. It introduces the mathematics of insurance and financial contracts.

• Topics Covered: Interest Theory, Life Contingencies (Mortality Models), and Pricing/Reserving for simple insurance products.
• Good for: Students with Commerce, Finance, or Economics backgrounds. It connects easily with business school concepts. This is the rough equivalent to the SOA’s Exam FM, but with an added insurance dimension.

The Softer Skills

The CB exams (e.g., CB1 Business Finance, CB2 Business Economics) are less mathematically technical.

• Recommendation: Many students take a CB subject along with or immediately after their first technical exam (CS1 or CM1). They offer a quicker win to gain momentum.

Use this simple table to determine which actuarial exam should start with based on your prior learning:

Starting your actuarial exam order for beginners correctly is about more than just a credential. It’s about professional readiness.

• It Builds Confidence: Passing that first exam proves to yourself and others that you can handle the rigorous study schedule. It establishes necessary study discipline.
• It’s Your Internship Ticket: Actuarial exams for freshers are the main differentiator on a resume. Nearly all major employers require candidates to have at least 1–2 exams cleared to be eligible for an internship or entry-level job. The exam pass validates your commitment.
• It Strengthens Your Resume: Clearing even one exam moves you out of the generic applicant pool and into the “actuarial student” category.

Regardless of which actuarial exam you start with, success hinges on disciplined preparation.

• Allocate Time: Plan for a minimum of 150–300 hours of dedicated study time per exam. Spread it over 3–5 months.
• High-Quality Resources: Invest in top-tier study materials (ASM, Actex, or specialized coaching providers). Don’t rely solely on textbooks.
• Practice, Practice, Practice: The difference between success and failure is often the volume of problems practiced. Use revision banks and end-of-chapter questions religiously.

• Memorizing Without Understanding: These are conceptual exams. You must understand the why behind the formula, not just the how to use it.
• Not Practicing Timed Exams: Speed matters immensely. Your first exam often requires completing complex calculations quickly under pressure. Practice full-length, timed mock exams.
• Rushing Registration: Give yourself enough time. Register only when you consistently score passing marks on your practice tests.

Let’s be direct: these exams are meant to be hard. They filter out the uncommitted.

• Failing Is Normal: Many successful actuaries fail an exam once or twice. It is a necessary part of the process. View a failed attempt as paid tuition for the next sitting.
• Progress Is Slow But High-Reward: The journey to Fellowship takes years. Focus on consistency—clearing one exam at a time—rather than aiming for impossible perfection. Every pass leads to a salary bump and career progression on the actuary career path.

You now have the roadmap. There is truly no single ‘correct’ first exam; the best one for you is the one that aligns with your current knowledge and will give you the highest chance of success right out of the gate.

Your first exam serves as your personal benchmark. It sets your study habits and unlocks your career potential. Don’t let indecision hold you back any longer.

Your journey to becoming an actuary starts today—choose your first exam and begin preparing confidently.