London Market Insurance Principles and Practices (LM2)

London Market Insurance Principles and Practices (LM2) continues the learning journey started by London Market Insurance Essentials (LM1), taking a more in-depth review of some topics as well as introducing new topics for the first time.

It considers the London market overall and what might make it an appealing location for clients to obtain insurance, and the various risks written, both direct and reinsurance, in greater detail.

There is more coverage of regulatory matters such as market security, the regulation that applies to the market both from UK and international regulators, and also the regulation of intermediaries, including brokers and others such as coverholders.

The study material considers both the business process flow in the market as more detail on the underwriting process, including a closer look at documentation used, premium calculation and loss/exposure modelling.

It then covers the reasons for and processes behind delegation (particularly of underwriting), and the claims process in the market.

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) and London Market Insurance Principles and Practices (LM2) achieves the qualification of Award in London Market insurance. The additional completion of London Market Underwriting Principles (LM3) achieves the Certificate in London Market Insurance.

Summary of learning outcomes 

1. Understand the business nature of the London Market
2. Understand the main classes of insurance written in the London Market
3. Understand reinsurance within the insurance market
4. Understand market security
5. Understand the regulatory and legal requirements applicable to the transaction of insurance business
6. Understand insurance intermediation in the London Market
7. Understand the underwriting function within the context of the London Market
8. Understand the way that business is conducted in the London Market
9. Understand the purpose, benefits and operation of delegated underwriting
10. Know the handling of claims in the London Market
11. Understand the main methods of resolving complaints

Plus 4 case studies comprising 5 questions each covering any of the learning outcomes

Assessment

• 2 hour exam
• 55 multiple choice questions (MCQs) and 4 case studies, each comprising 5 (MCQs)
• The standard pass mark is 70% (for more information on standard pass marks please see here)
• The 2024 pass rate for this unit was 65.8%

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

2025 edition (applicable to exams sat 01 Jan 25 to 31 Dec 25) 

Revision aids available 

The revision aids available for this unit are listed below. Find out more details. **Please see individual shop pages for 2025 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.