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Level 3


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London Market Underwriting Principles (LM3)

London Market Underwriting Principles (LM3) develops knowledge and understanding of the underwriting disciplines within 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.

**Click here for an important notice for international deliveries**

London Market Underwriting Principles (LM3) builds on knowledge acquired from completing of London Market Insurance Essentials (LM1) and London Market Insurance Principles and Practices (LM2).

It begins by exploring the London Market and some of the challenges it faces in remaining competitive. It considers the role of brokers and other types of intermediary, and the various ways business can be written in London to ensure the widest possible access to risks. It also examines the relative risk involved once authority is delegated.

The importance of the business planning process is discussed in some detail, as well as the expectations of investors and other stakeholders such as customers, employees, regulators and tax authorities.

Finally, the deal itself is considered, including the importance of setting the price for the risk presented, and capturing the agreement between the parties in an unambiguous contract.

London Market Underwriting Principles (LM3) provides the tools and knowledge and skills to be part of a vibrant, relevant and meaningful market, which has its place in the international insurance community for years to come.

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), London Market Insurance Principles and Practices (LM2) and London Market Underwriting Principles (LM3) achieves the Certificate in London Market Insurance.

Summary of learning outcomes 

  1. Understand the framework within which business is conducted in the London Market
  2. Understand the role, purpose and implications of policy wording in practice
  3. Understand the role and importance of business planning and capital setting in the London Market
  4. Understand the pricing of risk at an individual and at a portfolio level
  5. Understand the various methods of writing business and distribution


  • 2 hour exam
  • 75 multiple choice questions
  • 70% nominal pass mark
  • The 2020 pass rate for this unit was 89%

Study material - editions available

2022 edition (applicable to exams sat 01 Jan 22 to 31 Dec 2022)