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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

    • Key Facts Booklet
    • Knowledge Checker
  • Assessment entry.

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 2021 pass rate for this unit was 86%

Units treated as equivalent

Due to the extent of syllabus overlap, certain combinations of current and withdrawn units will result in only one award of credits.

If a withdrawn equivalent is held you may not need to complete a current unit in order to satisfy a qualification's completion rules. Clarification should always be sought from CII Customer Service.

Find out more about credit awards for equivalent units

Study material - editions available

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

2023 edition (applicable to exams sat 01 Jan 23 to 31 Dec 2023) 

Revision aids available **Please check the individual shop pages for the availability dates for the 2023 edition**

The revision aids available for this unit are listed below. You can find more details about these here.

  • Key Facts Booklet
  • Knowledge Checker

Note for purchasing revision aids: please make sure you do not already have the revision aid(s) as part of any Enrolment plus purchase.