The actuarial exam landscape is constantly evolving to reflect the changing skillset demands of the profession. In 2018, the Casualty Actuarial Society (CAS) introduced two new exams: Modern Actuarial Statistics I & II (MAS-I & MAS-II). This article explores these changes, specifically addressing the question: How does MAS-II compare to existing SOA exams?
Why the Change to MAS Exams?
The SOA’s decision to discontinue Exam C (used by CAS candidates to waive Exam 4) prompted the CAS to review its syllabus. This led to the development of MAS-I and MAS-II, designed to modernize the curriculum, particularly in statistics and analytics, aligning it with the needs of future actuaries.
MAS-I and MAS-II Content Overview
While not a direct replacement, MAS-I generally covers the material of the previous Exam S, while MAS-II encompasses Exam 4/C content alongside new topics. Here’s a breakdown:
MAS-I:
- Probability Models: Stochastic processes and survival models.
- Statistics: Parameter estimation, hypothesis testing, statistical distributions.
- Extended Linear Models: OLS, GLM, and other linear models (understanding, development, evaluation, and interpretation).
- Time Series with Constant Variance: Analysis and forecasting using AR, MA, and ARIMA models.
MAS-II:
- Introduction to Credibility: Limited fluctuation, Bühlmann, and Bayesian credibility.
- Linear Mixed Models: Understanding, selection, and interpretation.
- Bayesian Analysis and Markov Chain Monte Carlo: Understanding, selection, and interpretation of Bayesian MCMC models.
- Statistical Learning: Supervised and unsupervised learning techniques.
These topics, validated through industry surveys and employer feedback, equip future actuaries with crucial statistical and analytical capabilities.
Comparing MAS-II to SOA Offerings
MAS-II, while incorporating some Exam 4/C material, delves deeper into predictive analytics and modern statistical techniques not explicitly covered in comparable SOA exams. It emphasizes practical application and a deeper understanding of advanced statistical modeling relevant to the property and casualty field. This distinguishes it from SOA exams that may focus on broader actuarial principles across various disciplines. The inclusion of Bayesian analysis, Markov Chain Monte Carlo methods, and statistical learning in MAS-II provides a specialized focus on techniques highly relevant to modern actuarial practice.
Transitioning to the New Exams
The transition to MAS-I and MAS-II was designed to be straightforward:
- MAS-I: Candidates with Exam S credit automatically receive MAS-I credit.
- MAS-II: Candidates with Exam 4/C credit automatically receive MAS-II credit. While not a prerequisite, familiarity with MAS-I content is recommended for MAS-II.
Impact on CAS Credentials
The new exams streamline the ACAS designation requirements, replacing two exams with two updated versions:
- Previous ACAS Requirements: Exams 1/P, 2/FM, 3F/MFE, 4/C, S, 5, and 6.
- New ACAS Requirements (2018 and beyond): Exams 1/P, 2/FM, 3F/IFM, MAS-I, MAS-II, 5, and 6.
Addressing Student and Faculty Concerns
The CAS acknowledges the impact of exam changes on students and faculty. The MAS exams aim to benefit students by providing more relevant skills without increasing required exam hours. Exposure to advanced statistical concepts, even if a student ultimately pursues a different actuarial track, remains valuable.
Conclusion
The introduction of MAS-I and MAS-II demonstrates the CAS’s commitment to providing a modern and relevant curriculum for future actuaries. MAS-II, in particular, provides a specialized focus on modern statistical and analytical techniques essential for success in the property and casualty field, differentiating it from broader SOA exam offerings. These changes ultimately enhance the quality and relevance of the CAS education system.
