London Market Insurance Principles and Practices (LM2) provides a broader understanding of insurance process and practice across the London Market.
The default Enrolment option for this unit includes:
- Latest version of the core learning content, in digital format only.
- Additional revision aids.
- Assessment entry.
London Market Insurance Principles and Practices (LM2) continues the learning journey started by London Market Insurance Essentials (LM1), taking a more in-depth review of some topics as well as introducing new topics for the first time.
It considers the London market overall and what might make it an appealing location for clients to obtain insurance, and the various risks written, both direct and reinsurance, in greater detail.
There is more coverage of regulatory matters such as market security, the regulation that applies to the market both from UK and international regulators, and also the regulation of intermediaries, including brokers and others such as coverholders.
The study material considers both the business process flow in the market as more detail on the underwriting process, including a closer look at documentation used, premium calculation and loss/exposure modelling.
It then covers the reasons for and processes behind delegation (particularly of underwriting), and the claims process in the market.
Building a successful career in insurance
This course is for anyone working in or conducting business through the London Market who seek to develop their knowledge and skills for a rewarding career in the insurance profession or in a support role. Completion of London Market Insurance Essentials (LM1) and London Market Insurance Principles and Practices (LM2) achieves the qualification of Award in London Market insurance. The additional completion of London Market Underwriting Principles (LM3) achieves the Certificate in London Market Insurance.
Summary of learning outcomes
- Understand the business nature of the London Market
- Understand the main classes of insurance written in the London Market
- Understand reinsurance within the insurance market
- Understand market security
- Understand the regulatory and legal requirements applicable to the transaction of insurance business
- Understand insurance intermediation in the London Market
- Understand the underwriting function within the context of the London Market
- Understand the way that business is conducted in the London Market
- Understand the purpose, benefits and operation of delegated underwriting
- Know the handling of claims in the London Market
- Understand the main methods of resolving complaints
Plus 4 case studies comprising 5 questions each covering any of the learning outcomes
- 2 hour exam
- 55 multiple choice questions (MCQs) and 4 case studies, each comprising 5 (MCQs)
- 70% nominal pass mark
- The 2020 pass rate for this unit was 77%
Study material - editions available
2021 edition (applicable to exams sat 01 Jan 21 to 31 Dec 2021)