SOA FAP – Fundamentals of Actuarial Practice

Develop Practical Expertise in Actuarial Problem-Solving, Risk Management, Modelling and Professional Decision-Making

Fundamentals of Actuarial Practice (FAP) is an e-learning programme conducted by the Society of Actuaries (SOA), USA, and forms part of the educational pathway towards the Associate of the Society of Actuaries (ASA) designation.

The programme focuses on applying actuarial principles and professional techniques to real-world business problems involving financial risks, insurance products, pricing, reserving, capital management and actuarial decision-making.

FAP combines risk identification, actuarial modelling, solution design, assumption setting, experience monitoring and professional communication, developing essential competencies for practical actuarial work.

Unlike traditional actuarial examinations, FAP is assessed through online learning modules, practical assignments and a comprehensive Final Assessment, rather than a conventional timed multiple-choice or written examination at a test centre.

Course Structure & Syllabus

FAP consists of five learning modules designed around the practical application of the Actuarial Control Cycle.

Key Modules Covered:

1. Risk in Actuarial Problems:
   Understanding actuarial business problems, identifying financial risks, defining stakeholder requirements, evaluating uncertainty and applying risk management principles.
2. Designing and Pricing an Actuarial Solution:
   Understanding actuarial models used in insurance pricing, reserving and funding, applying financial and actuarial principles and evaluating alternative approaches to business problems.
3. Model Selection and Solution Design:
   Selecting appropriate actuarial models, identifying relevant data, evaluating model assumptions, designing solutions, testing model outputs and applying the Actuarial Control Cycle.
4. Selection of Initial Assumptions:
   Developing economic, demographic and experience-based assumptions, evaluating data quality, understanding regulatory constraints and assessing the interdependence of assumptions.
5. Monitoring Results:
   Monitoring actual versus expected experience, analysing deviations, validating data, identifying emerging risks and recommending adjustments to actuarial solutions.

The FAP curriculum focuses on practical actuarial judgement, business problem-solving, risk assessment, actuarial modelling and professional communication.

Module Structure & Assessments

The SOA FAP programme includes five learning modules, interactive scenarios, four End-of-Module Assessments and one comprehensive Final Assessment.

The SOA does not publish fixed examination-style topic weightages for FAP. Candidates are assessed through practical application of concepts rather than a traditional marks-based examination syllabus.

Assessment Structure

FAP uses online assessments to evaluate actuarial problem-solving, professional communication and the practical application of actuarial principles.

Important Assessment Guidelines

• Online Learning:
  Candidates complete the required modules and interactive learning activities through the SOA e-learning platform.
• End-of-Module Assessments:
  Each EMA evaluates the application of actuarial principles, analytical reasoning and professional communication through practical assignments.
• Assessment Time Limit:
  Candidates have 96 hours to complete each EMA after activating the assessment clock.
• Final Assessment:
  The FA evaluates the integrated application of actuarial concepts through a comprehensive business scenario requiring structured analysis, professional judgement and communication.
• Final Assessment Eligibility:
  Candidates must complete the required learning activities and submit all four EMAs before attempting the Final Assessment. They are not required to have received passing results for every EMA before beginning the FA.
• Submission Deadline:
  The Final Assessment must be submitted within 96 hours after activation, before the applicable FA version deadline and before course access expires, whichever occurs first.
• Assessment Integrity:
  Candidates must follow SOA rules concerning independent work, collaboration, confidentiality, plagiarism and submission of assessment materials.
• Final Submission:
  Uploading files alone does not complete the assessment. Candidates must also complete the required declaration confirming that the submission is their own work.

Final Assessment Schedule

SOA publishes separate availability windows, submission deadlines and result release periods for different Final Assessment versions.

These dates are based on the published SOA schedule and may be updated. Submission deadlines are based on US Central Time. Candidates should verify the latest Final Assessment schedule before downloading their assessment.

Eligibility Criteria

FAP is suitable for actuarial students developing practical knowledge of actuarial business applications and professional decision-making.

• No prior actuarial examination pass is required solely to register for FAP.
• Completion of Pre-Actuarial Foundations (PAF) and Actuarial Science Foundations (ASF) is strongly encouraged before registering.
• Knowledge of fundamental actuarial concepts from SOA preliminary examinations is beneficial.
• Students should have familiarity with financial mathematics, probability, insurance principles and actuarial modelling.
• Candidates must satisfy SOA’s applicable registration, e-learning access and assessment requirements.

Learning Objectives

Studying FAP develops the ability to:

• Apply the Actuarial Control Cycle to real-world business problems.
• Identify actuarial risks and define business problems.
• Evaluate appropriate pricing, reserving and funding approaches.
• Select actuarial models based on business requirements.
• Evaluate model assumptions, constraints and limitations.
• Monitor actual experience against expected outcomes.
• Identify emerging risks and recommend appropriate actions.
• Communicate actuarial findings clearly and professionally.
• Apply professional judgement to practical actuarial decisions.

Practical Applications of FAP

The knowledge gained through FAP is applicable across several actuarial and financial disciplines:

1. Life Insurance:
   Evaluating insurance products, pricing models, actuarial reserves, policyholder risks and financial outcomes.
2. General Insurance:
   Analysing claims experience, evaluating insurance risks, developing pricing approaches and monitoring reserve adequacy.
3. Health Insurance:
   Assessing healthcare risks, modelling claims experience and evaluating financial obligations.
4. Pensions & Retirement Benefits:
   Evaluating retirement benefit obligations, funding requirements and long-term actuarial assumptions.
5. Actuarial Consulting & Risk Management:
   Defining business problems, selecting suitable models, assessing financial risks and presenting professional recommendations.

FAP develops essential practical actuarial competencies by connecting technical actuarial knowledge with business applications, professional judgement and communication, supporting progression towards the Associate of the Society of Actuaries (ASA) designation.

Technical Requirements – AEI Learning Application

To access online classes, recorded lectures and digital study resources, students must ensure their devices meet the following minimum technical requirements of the Actuators Educational Institute (AEI) Learning Application.

Important Information

FAP is an independently assessed SOA e-learning programme. AEI preparation supports conceptual understanding, practice scenarios, actuarial modelling techniques, professional communication and decision-making skills.

Candidates must register separately with the Society of Actuaries for the official FAP modules and Final Assessment and must complete their official assessments independently in accordance with SOA assessment-integrity requirements.

The SOA may revise assessment procedures, module requirements, access periods and Final Assessment schedules. Candidates should refer to the official SOA guidance applicable to their registration and assessment dates.