Anyone just take actuarial exam P1?

[mittman84]

I just took the actuarial exam P1 on the 16th. Just wondering if anyone else did and what they thought of it.

[Nottom]

I took it as well, I really wasn't prepared for it as I never took a stat class that included most of the material and basically taught myself most of the test syllabus in the week between graduation and the exam. As such, I found it quite difficult but would guess that I likely passed (I'm pretty sure I got at least 22/30 right, and there were really only 2-3 where I had to make some sort of guess).

Sucks that we have to wait 6-7 weeks to get the results for a test taken on a computer.

[mosdef]

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Sucks that we have to wait 6-7 weeks to get the results for a test taken on a computer.

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There is a lot of analysis that goes into the setting of the passing grade AFTER the exam is written. They say that the passing grade is set before hand, but several of my colleagues have participated in the evaluation process and it's not quite true. For every exam, there are tons of complaints that come in from candidates about poorly worded questions, and the SOA takes the complaints really seriously. For every question that is challenged, they review the complaints individually and then a group of FSAs on the exam committee gets together to discuss if the complaint has merit. If a question is deemed "unfair", then they have to decide how to adjust the passing grade accordingly to exclude the question. That's why they budget so much time.

[Copernicus]

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Sucks that we have to wait 6-7 weeks to get the results for a test taken on a computer.

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There is a lot of analysis that goes into the setting of the passing grade AFTER the exam is written. They say that the passing grade is set before hand, but several of my colleagues have participated in the evaluation process and it's not quite true. For every exam, there are tons of complaints that come in from candidates about poorly worded questions, and the SOA takes the complaints really seriously. For every question that is challenged, they review the complaints individually and then a group of FSAs on the exam committee gets together to discuss if the complaint has merit. If a question is deemed "unfair", then they have to decide how to adjust the passing grade accordingly to exclude the question. That's why they budget so much time.

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Its totally untrue. On MC exams the % passing after excluding 0 scores is set to range between 30 and 40%. The final number is determined after finding a breaking point that differentiates between large and small groups. (Eg a handful with a score of 1/5 below the next highest score would mean the higher score is taken). The relatively difficulty of the test is also taken into account to try and smooth between sessions. A large number of very high scores will result in a somewhat smaller % passing, because the lower scores arent as highly valued as lower scores from sittings which were apparently more difficult.

That said, I dont know if an actuarial career is where I would head these days. The work is as demanding as a lot of other fields, and the days of the guaranteed pot at the end of the rainbow are fading fast.

I steered my son away from it even though I could be a big help to him both exam wise and contacts.

Good luck!

BTW unless it was a very easy exam 19 definites plus 2 or 3 where some obvious wrong answers are eliminated plus 8 blanks should be good for a 7. If you bombed the 2 or 3 and made mistakes on a few others youre borderline 5/6.

[mittman84]

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That said, I dont know if an actuarial career is where I would head these days. The work is as demanding as a lot of other fields, and the days of the guaranteed pot at the end of the rainbow are fading fast.

I steered my son away from it even though I could be a big help to him both exam wise and contacts.


[/ QUOTE ] Why? explain please, i have heard nothing but great things about becoming an actuary since you can do so many different things. I am also getting a bachlors in economics and can finish a masters in econ over the summer following my senior year, is that something you think I should consider more?

[Copernicus]

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That said, I dont know if an actuarial career is where I would head these days. The work is as demanding as a lot of other fields, and the days of the guaranteed pot at the end of the rainbow are fading fast.

I steered my son away from it even though I could be a big help to him both exam wise and contacts.


[/ QUOTE ] Why? explain please, i have heard nothing but great things about becoming an actuary since you can do so many different things. I am also getting a bachlors in economics and can finish a masters in econ over the summer following my senior year, is that something you think I should consider more?

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Dont let me discourage you..it really depends a lot on what your long term goals and skills are..I was speaking from the perspective of my goals and skills which were perfectly aligned with pension actuarial consulting..a career with fading prospects. That is the only actuarial area that would suit me, because senior management (read $$$$) positions that an actuary can hope to ascend to in the insurance side of things are few and far between.

If you enjoy the challenge and dont mind the grind of exams you can work/study about the same amount of hours as a law associate or in investment banking, have a guaranteed path to a 6 figure income in a relatively short period of time, but plateau after that. With the advent of computers there just isnt as much need for innovative thinking in insurance any longer. Meanwhile your peers in law firms and investment banking will split off into a few high achievers who become partners (read $$$$) and a lot of burnouts.so if youre not a high achiever then an actuarial career is still one of the best there is.

The beauty of pension consulting was the same early career advantages but a much higher plateau.

I dont know your skill sets at all, but for a highly motivated, bright economics major that is mathematically inclined, communicates well and can sell himself, I would look into a few years at a Management Consulting firm, a company sponsored MBA, and path toward partnership. You will work much harder than you would have as an actuarial student, but not have studying for exams on top of it.

I was at a pension actuarial conference last month and was marveling at the demographics. When I broke into the business in the mid 70s I was one of the youngest at the same conference. 30 years later Im not much above average age! Not the sign of a robust career path Im afraid...and its demise lays squarely with overregulation and politics.

[mosdef]

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Its totally untrue. On MC exams the % passing after excluding 0 scores is set to range between 30 and 40%. The final number is determined after finding a breaking point that differentiates between large and small groups. (Eg a handful with a score of 1/5 below the next highest score would mean the higher score is taken). The relatively difficulty of the test is also taken into account to try and smooth between sessions. A large number of very high scores will result in a somewhat smaller % passing, because the lower scores arent as highly valued as lower scores from sittings which were apparently more difficult.


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My understanding from talking to members of the actual exam committees is that the process you've outlined is the start of the process, and is fairly well automated, but that the discussion of complaints about the exam is what eats up most of the time between test taking and the release of results. Things have been changing with exams over the last few years, so maybe I'm just been confused by the transition.

FYI, I also currently work for a pension consulting career and I agree that the industry is nose-diving fast. Regulations in Canada have really restricted pension plans with asymmetrical treatment of risk and it's killing the consulting business. Firms are no longer looking for advice, they're looking for a way out!

[Copernicus]

[ QUOTE ]
[ QUOTE ]
Its totally untrue. On MC exams the % passing after excluding 0 scores is set to range between 30 and 40%. The final number is determined after finding a breaking point that differentiates between large and small groups. (Eg a handful with a score of 1/5 below the next highest score would mean the higher score is taken). The relatively difficulty of the test is also taken into account to try and smooth between sessions. A large number of very high scores will result in a somewhat smaller % passing, because the lower scores arent as highly valued as lower scores from sittings which were apparently more difficult.


[/ QUOTE ]

My understanding from talking to members of the actual exam committees is that the process you've outlined is the start of the process, and is fairly well automated, but that the discussion of complaints about the exam is what eats up most of the time between test taking and the release of results. Things have been changing with exams over the last few years, so maybe I'm just been confused by the transition.

FYI, I also currently work for a pension consulting career and I agree that the industry is nose-diving fast. Regulations in Canada have really restricted pension plans with asymmetrical treatment of risk and it's killing the consulting business. Firms are no longer looking for advice, they're looking for a way out!

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I wasnt disagreeing that most of the time is spent evaluating individual questions and whether they should be discounted...that is the most time consuming part of the process. I probably respsonded in the wrong place (I read these things flat, not threaded). I was saying it is untrue that the passing grade is set before hand.

[skeetshooter]

I took this also, I guessing I got about 24-25, so allowing for some stupid mistakes I should still be good to pass. What about health and benefits consulting Copernicus, this still seems to be a healthy industry?

[Copernicus]

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I took this also, I guessing I got about 24-25, so allowing for some stupid mistakes I should still be good to pass. What about health and benefits consulting Copernicus, this still seems to be a healthy industry?

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Health and welfare benefit consulting is mostly about design and contract negotiations. There is very little math involved, and actuarial credentials dont enhance the upper levels of that career path significantly. Exam raises and bonuses of course still help on the way up.

The one actuarial area of health consulting is valuations of post-retirement welfare benefit liabilities. Unfortunately those plans are being terminated as rapidly as traditional pension plans.

The post-9/11 market slide could have been an opportunity for meaningful analysis of the inadequacy of a retirement system based solely on defined contribution plans (ie savings accounts, whether they are corporate or individual). Unfortunately politicians had tunnel vision regarding privatizing portions of Social Security, which requires preaching the benefits of savings type plans.

The low interest rate environment, combined with the shortsighted meddling of accountants and unending government regulation have crippled anything approaching rational retirement policy.

The only viable area I see for sustained retirement plan consulting is phased retirements and diversion of the pension surpluses that would arise from the resulting savings into health benefits. After a surge in business resulting from legislation permitting phased retirements the primary business left will be union plans, a rather narrow field (to which I switched 3 years ago).