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, delivered on RevisionMate.
  • Assessment entry.

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 (marked within 63 calendar days of submission); and a 60 minute exam comprising 50 multiple-choice questions (MCQs)
  • 60% coursework pass mark
  • 65% exam nominal pass mark
  • The average pass rate for those completing Diploma in Insurance mixed assessment units in full is currently 92.0%
  • Coursework assignment to be submitted within 6 months of enrolment
  • Exam to be passed within 18 months of enrolment (only first exam entry included as part of the enrolment)

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

2023-24 edition (applicable to exams sat 01 May 2023 to 30 April 2024)

Revision aids available

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