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Underwriting Practice (M80)

The objective of this unit is to develop knowledge and understanding of the fundamental principles and practices of underwriting practice and the environment within which they operate.

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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Underwriting Practice (M80) provides an understanding of the key influences of the regulatory and commercial environment on underwriting, underwriting policy and practice, use of statistical data, risk pricing and risk exposure and control.

It also looks at how the UK regulatory regime has evolved, including the most recent context and reason for those rules incorporated in The Financial Services Act 2012 and how the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) impact the underwriter's role.

We look at significant legislative aspects that create new challenges to the way in which the underwriter is permitted to operate in a more consumer orientated environment.

We look in detail at the role of capital and its impact on the underwriter, the underwriting cycle and the effect that major events can have on that and whether, as these increase in severity or frequency, the solution can be provided by the insurance market, central government or a mixture of both. 

Building a successful career in insurance

This course is ideal for anyone seeking a career in underwriting or looking to gain knowledge and understanding of underwriting practice. Underwriting Practice (M80) 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 key influences of the regulatory and commercial environment on underwriting.
  2. Understand key aspects of underwriting policy and practice.
  3. Understand how statistical data is used for underwriting.
  4. Understand the principles and practices of risk pricing.
  5. Understand risk exposure and control.

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 91.2%

Study material - editions available

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