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Award in London Market Insurance LM2

Level:N/A Duration:1 Day CII CPD Hours:6

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 London market insurance training unit is well suited to anyone in a technical role in broking, underwriting or claims.

This one-day revision course can be delivered in two different formats:

  • If students have undertaken extensive self-study then this course 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 MCQ mock exam.
  • Alternatively, the tutor can spend the day working with the students on the main topics of the exam and the multiple choice questions/answers along with the Mock Test can be taken away by the students to complete in their own time.

LM1 is worth 10 credits and this LM2 unit is worth 15 credits at Certificate in Insurance level in the CII qualification framework. You need 40 credits to achieve the Certificate.

  • Workshop content includes:
    • 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 regulator 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).

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