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, delivered on RevisionMate.
  • Revision aids:  Key Facts Booklet,  Knowledge Checker (delivered on RevisionMate).

  • 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 2022 pass rate for this unit was 84%

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

Course delivery

Instructions on accessing your course on RevisionMate will be sent to your registered email address. This is typically within two working days of your order being placed, but may be longer, particularly if payment is made by bank transfer or the unit is available as a pre-order.

Study material - editions available

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

2024 edition (applicable to exams sat 01 Jan 24 to 31 Dec 2024)

Revision aids available 

The revision aids available for this unit are listed below. Find out more details**Please see individual shop pages for 2024 edition availability**

  • 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.