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Insurance Broking Practice (M81)

The objective of this unit is to develop knowledge and understanding of the fundamental principles and practices of insurance broking practice, including the technical skills required with reference to client care.

The default Enrolment option for this unit includes:

  • Latest version of the core learning content, in digital format only.
  • Assessment entry.

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This unit will help you to acquire and develop the skills, care and diligence required to operate in the best interests of the client in finding suitable and cost-effective insurance protection and within the legal and regulatory framework operating for insurance business within the UK.

We consider the broker's day-to-day dealing with clients and insurers in order to achieve the respect necessary between all parties to ensure an enduring professional relationship between broker and client. It is paramount that the broker can meet the expectations of the client and the regulator in their dealings.

We look at how the broker negotiates and places a risk, including the relationship brokers maintain with cover providers, including insurers, wholesale brokers and the Lloyd's market. The study text incorporates guidance on the skills and knowledge required in dealing with smaller clients, as well as the special skills necessary in dealing with global insurance programmes.

It also looks at other services brokers provide to clients, such as claims handling and risk management advice, so they can provide a complete service.

Building a successful career in insurance

This course is ideal for anyone seeking a career in insurance broking or looking to gain knowledge and understanding of insurance broking practice. Insurance Broking Practice (M81) counts towards a Diploma in Insurance. It may also count towards the Advanced Diploma in Insurance.

Please note it is assumed that you already have knowledge of the fundamental principles of insurance as covered in Insurance, Legal and Regulatory (IF1) or equivalent examinations.

Summary of learning outcomes 

  1. Understand the key aspects of the regulatory and legal environment within which insurance brokers operate.
  2. Understand the role of the insurance broker in meeting client needs.
  3. Understand the role of the insurance broker in the negotiation and placing of insurance contracts.
  4. Understand the role of the insurance broker in selecting insurers.
  5. Understand the role of the insurance broker in the design and operation of insurance programmes.
  6. Understand the role of the insurance broker in the claims negotiation, collection and payment process.
  7. Understand the range of services that may be available from insurance brokers and their benefit to clients.

Assessment

  • Coursework assignment with 10 compulsory short answer questions; and a 60 minute exam comprising 50 multiple-choice questions (MCQs)
  • 60% coursework nominal pass mark
  • 65% exam nominal pass mark
  • The average pass rate for those completing Diploma in Insurance mixed assessment units in full is currently 91.7%

Study material - editions available

2021-22 edition (applicable to exams sat 01 May 2021 to 30 Apr 2022).