Strategic Planning for Actuarial Exam Preparation: Order and Number of CT Papers
As an aspiring actuary, navigating the right sequence and number of CT (Core Technical) papers can be daunting. This article aims to provide clarity on how to approach your actuarial journey based on your academic background and strengths.
Introduction to the New Actuarial Syllabus
From 2019, the Actuarial Science syllabus by IAI (Institute and Faculty of Actuaries) underwent a significant change. The exams are now organized into different groups under the Core Principles. These groups include:
Core Principles (CP): Consists of CS (Core Principles: Statistics), CB (Core Principles: Briefings), and CM (Core Principles: Mathematics). Computer-Based Tests (CBT): These are designed to test specific competencies in actuarial science.Notably, the traditional CT papers (Financial Mathematics, Contingencies, etc.) have been replaced by the Core Principles groups.
Deciding on the Order of Exams
The order in which you should take the CT papers largely depends on your academic background and personal strengths. Here’s a guide to help you decide:
If you are from the commerce stream: You might want to start with CS1 and CS2 (Briefings) or if you are knowledgeable in mathematics, begin with CM1 (Monte Carlo Simulation). If you are good at mathematics: It would be beneficial to start with CM1 (Monte Carlo Simulation). This will lay a strong foundation for your mathematical exams.It's crucial to remember that you should aim to clear a maximum of 3-4 exams before starting a professional career. This ensures that you are well-prepared and confident before entering the workforce.
Recommended Order and Strategy
While there is no set order, I recommend that you start with the subjects that are easiest for you. This will boost your confidence as you progress and tackle the more challenging exams. According to my experience, a vast majority of people begin with CT-1 (Financial Mathematics), which serves as the foundation for all the subsequent CT exams.
If you have a strong background in economics, you might consider starting with CT-2 (Finance and Financial Reporting) or CT-7 (Business Economics). However, these exams are considered less valuable as they do not contribute significantly to your professional recognition.
Once you have completed the easier subjects, you can move onto the more complex ones. The key is to connect exams that have a logical or thematic connection. For instance, CT-3 (Probability and Mathematical Statistics) and CT-6 (Statistical Methods) are interconnected. Therefore, you should opt to take CT-6 immediately after CT-3 to maintain the flow of your preparation.
Additionally, you can mix and match CT-2 and CT-7 with other subjects like CT-4 (Models) or CT-5 (Contingencies). This flexibility allows you to focus on areas that align with your strengths and interests.
Regardless of the order, the first exam, CT-1 (Financial Mathematics), is essential because it lays the foundation for all the other exams. This exam is the best starting point to ensure a smooth and successful actuarial journey.
If you plan wisely, you can clear the CT series within 3-4 years. With a strategic approach, you can achieve your actuarial goals efficiently and effectively. Here's to your successful actuarial journey!