Trying to decide between SOA Exam FAM vs Exam SRM? This guide breaks down the key differences, career considerations, and study strategies to help you choose which actuarial exam to take first and set yourself up for success.
As you’re embarking on your actuarial journey, you’ve probably found yourself staring at the SOA exam requirements and wondering, “Should I tackle Exam FAM or Exam SRM first?”
It’s a common question we hear from aspiring actuaries—and, understandably so. After all, both exams are crucial stepping stones. However, they’re quite different beasts that require distinct approaches and preparation strategies.
Luckily, we’re here to break down everything you need to know about these two exams so you can make an informed decision that fits your goals, timeline, and study style.
Follow along and find out everything you need to know about the SOA Exam FAM and Exam SRM, including which one to tackle first.
The Differences: What Each Exam Covers
Before we jump into which exam to take first, it’s important to understand what you’re signing up for with each one. Both FAM and SRM play critical roles in building your actuarial foundation, but they focus on completely different skill sets.
Exam FAM: Your Gateway to Actuarial Mathematics
Exam FAM (Fundamentals of Actuarial Mathematics) is all about applying actuarial methods to real-world scenarios. Think of it as your bridge between the theoretical math you learned in Exams P and FM and the practical applications you’ll use as a working actuary. The exam covers topics like:
- Survival models and life tables
- Life insurance and annuity calculations
- Pension mathematics
- Short-term insurance models, like frequency and severity
What makes FAM unique is its focus on application. So, besides just crunching numbers, you’re learning to think like an actuary and solve the kinds of problems you’ll face in your career.
Exam SRM: Mastering the Art of Risk Analysis
By contrast, the Exam SRM (Statistics for Risk Modeling) covers statistical methods and their application to risk analysis and modeling. So, if you love diving deep into data and statistical techniques, SRM might be right up your alley. Key areas include:
- Regression analysis and model selection
- Time series analysis
- Principal component analysis
- Machine learning techniques for actuarial applications
SRM is heavily focused on statistical theory and computational methods, making it quite different from the more traditional actuarial mathematics approach you’ll find in FAM.
The Big Question: Which Exam Should You Take First?
There’s really no one-size-fits-all answer. Your choice should depend on several factors specific to your situation and career goals.
Consider Your Academic Background
Your educational background can be a huge factor in determining which exam feels more natural to tackle first. If you’ve got a strong statistics or data science background, you might find that an Exam SRM study manual clicks with you immediately. The statistical concepts and computational methods will feel familiar, giving you a head start on the material.
On the other hand, if your strength lies in traditional mathematics or you’ve already built momentum with the computational aspects of Exams P and FM, a SOA Exam FAM study guide might be the smoother transition. FAM builds naturally on the mathematical foundation you’ve already established.
Think About Your Career Path
Your long-term actuarial goals should definitely influence this decision. Are you leaning toward traditional life insurance or pension work? FAM might be the logical next step since it directly applies to those areas.
Or, maybe, you’re planning to work in property and casualty insurance or are interested in non-insurance roles like predictive analytics. In this case, SRM is the way to go, as a statistical focus could give you a competitive edge in those fields.
Strategic Study Approaches for Each Exam
No matter which exam you choose first, developing an effective study routine is crucial for success (and maintaining your sanity throughout the process).
Build Your FAM Study Strategy
When preparing for Exam FAM, you’ll want to focus on understanding the practical applications of actuarial mathematics.
FAM is all about application. The more problems you work through, the better prepared you’ll be. Besides working through problems, make sure you understand why certain approaches work and when to use different methods.
Master Your SRM Preparation
SRM requires a different approach because of its heavy statistical and computational focus. You’ll need to be comfortable with both the theoretical concepts and the practical implementation using statistical software.
SRM problems often require computational work, so getting familiar with the tools you’ll use is just as important as understanding the theory.
Create a Sustainable Study Schedule
Forget studying for 8 hours straight, day in and day out. Instead, set realistic daily goals that fit around your work and personal commitments.
Whether that’s an hour in the morning before work or a couple of hours in the evening, consistency beats intensity every time. And don’t be afraid to build in regular breaks and review sessions.
Manage Stress and Expectations
Remember, these exams are challenging by design, so it’s normal to feel overwhelmed sometimes, and it’s okay if you don’t grasp every concept immediately.
Are you taking the exam because you failed it the first time? Check out our guide on how you can bounce back and retake your test with confidence.
How Coaching Actuaries Can Support Your Journey
Whether you decide to tackle FAM or SRM first, having the right support system makes all the difference. At Coaching Actuaries, we understand that every student’s journey is unique, which is why our study materials and coaching approach are designed to adapt to your individual needs and learning style.
Our comprehensive study guides break down complex concepts into manageable pieces, while our practice exams help you build the confidence you need for exam day. Plus, our personalized study schedules ensure you’re making steady progress without burning out.
We know you put in the hard work. Now let us support you every step of the way. Find your course today.