Award in London Market Insurance (ALMI) LM2 (One Day Workshop)

LM2: LONDON MARKET INSURANCE PRINCIPLES AND PRACTICES

LM2 builds on the learning provided by the ‘LM1 insurance essentials’ unit, covering additional subject areas and developing a broader understanding of insurance process and practice across the London Market. With additional detail on technical topics such as reinsurance, intermediation and claims and underwriting, this unit is well suited to anyone in a technical role such as broking, underwriting or claims.

This one-day revision workshop can be delivered in two different formats. Firstly, if students have undertaken extensive self-study then this workshop will concentrate on the completion of multiple choice questions/answers to check their understanding of the topics covered. The course will conclude with a 75 multiple choice question mock exam.

Level: Introduction

Duration: 1 day(s)

CII CPD Hours: 6

WORKSHOP CONTENT

1. Business nature of the London Market
Subscription market
International nature of the London Market

2. Risks written in the London Market
Appeal of the London Market
Non-marine classes of business
Aviation classes of business
Marine classes of business

3. Reinsurance
Why reinsurance is purchased and sold
London reinsurance market
Types of reinsurance products
Reinsurance programme construction

4. Market security
Solvency
Application of solvency rules
Role of the Financial Services Authority (FSA) in solvency
Role of the European Union (EU) in solvency
Lloyd’s chain of security
Rating agencies

5. Legal and regulatory requirements
Compulsory insurance
Regulation relating to insurance contracts
Insurance premium tax (IPT)

6. Insurance intermediation
Law of agency
Types of intermediaries
Role of the broker in the placing and claims processes
Terms of Business Agreements (TOBAs)
Broker remuneration
Impact on brokers of EU legislation and UK regulation

7. Underwriting
Conduct of underwriting in the London Market
How underwriters and brokers interrelate
Market cycles
Loss exposure modelling
Premium calculation
Reserving
Reinsurance to close (RITC) and open years management

8. Business process
Formation and termination of the insurance contract
Documents used in the London Market
Key terms and conditions used in policy wordings
Methods of conducting business in the London Market
Contract certainty

9. Delegated underwriting
Purpose and types of delegated underwriting
Operation of delegated underwriting contracts
Controls over delegated underwriting
Outsourcing of other activities by insurers

10. Claims handling
Role of claims in the insurance process
Roles and responsibilities of the various parties in the claims process
Practical claims handling
Regulation of claims handling
Complaints handling, the Financial Ombudsman Service (FOS) and the Financial Services Compensation Scheme (FSCS)