London Market Insurance Essentials (LM1)

London Market Insurance Essentials (LM1) provides an essential grounding in the workings of the London insurance market.

London Market Insurance Essentials begins by introducing the fundamental principles of insurance and risk as well as the reasons for buying and selling insurance. The study text also looks at the function of insurance within the wider economy and its further role to protect citizens.

Legal principles and terminology are also introduced as well as the main classes of business written in the London Market and the theory of the insurance business cycle.

The structure of the London Market is considered in some detail to identify the various players and the flow of business around the market. The regulatory framework is introduced, including an overview of both national and international regulation as it might apply to brokers and insurers operating in the London Market.

Finally, London Market Insurance Essentials provides a firm understanding of the role of the broker and underwriter within the wider context of the market. Some concepts outlined in this unit will be built on in more detail in London Market Insurance Principles and Practices (LM2).

Building a successful career in insurance

This course is for anyone working in or conducting business through the London Market or in a support function such as marketing, HR or finance. 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 basic terminology used within the general insurance market
2. Understand the fundamental principles of insurance
3. Understand the main classes of insurance written in the London Market
4. Understand the insurance cycle
5. Understand reinsurance within the insurance market
6. Understand the structure of the London Market
7. Understand the London Market regulatory and legal environment
8. Understand the importance of appropriate systems and controls
9. Understand data protection and money laundering legislation and requirement
10. Understand the broker’s role in the way that business is conducted in the London Market
11. Understand the underwriter’s role in the way that business is conducted in the London Market

Assessment

• 1 hour exam
• 50 multiple choice questions
• The standard pass mark is 70% (for more information on standard pass marks please see here)
• The 2024 pass rate for this unit was 81.7%

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 CII 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 CII credit awards for equivalent units

Revision aids available 

The revision aids available for this unit are listed below. Find out more details. 

• 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.