Insurance broking

fundamentals
Objective
To provide knowledge and understanding of the roles and responsibilities of insurance broking
organisations, including:
• their interaction with insurers;
• their interaction with clients;
• regulatory and financial issues affecting them; and
• conduct issues.

Summary of learning outcomes Number of questions

in the examination*

1. Understand the insurance broking market. 12

2. Understand the role and responsibilities of the insurance broker in the provision of 20
insurance products and services

3. Understand contract and agency in relation to insurance brokers and their client. 6

4. Understand the key legal and regulatory issues affecting insurance brokers. 15

5. Understand the key financial issues affecting insurance broker. 12

6. Understand issues relating to the conduct and culture of insurance broking business. 10 case study related
questions

* The test specification has an in-built element of flexibility. It is designed to be used as a guide for study and is not a statement of actual
number of questions that will appear in every exam. However, the number of questions testing each learning outcome will generally be within
the range plus or minus 2 of the number indicated.

Important notes
• Method of assessment: 65 multiple choice questions (MCQs) and 2 case studies, each comprising
5 MCQs. 2 hours are allowed for this exam.
• This syllabus will be examined from 1 January 2021 until 31 December 2021.
• Candidates will be examined on the basis of English law and practice unless otherwise stated.
• Candidates should refer to the CII website for the latest information on changes to law and practice
and when they will be examined:
1. Visit www.cii.co.uk/qualifications
2. Select the appropriate qualification
3. Select your unit from the list provided
4. Select qualification update on the right hand side of the page

Published October 2020

©2020 The Chartered Insurance Institute. All rights reserved. I10
1. Understand the insurance broking 4.6 Explain the responsibilities of insurance brokers as
market. required by data protection legislation.
1.1 Explain the rationale for insurance brokers in the
5. Understand the key financial issues
insurance market.
affecting insurance broker.
1.2 Describe and understand the role of different types
5.1 Explain the different monies held by an insurance
of non-life insurance brokers in the insurance
broker.
market.
5.2 Explain the importance of the impact of the
1.3 Describe the services offered by insurance brokers
Insurance Distribution Directive 2018 in relation to
and the different ways they are remunerated.
handling money.
1.4 Explain the various roles within an insurance broking
5.3 Explain the importance of retaining clients and
organisation.
finding new business for insurance brokers.
2. Understand the role and responsibilities
6. Understand issues relating to the
of the insurance broker in the provision
conduct and culture of insurance broking
of insurance products and services
business.
2.1 Explain the role of the insurance broker in meeting
6.1 Explain the importance of good conduct in relation to
client needs by providing insurance products and
dealing with insurers and clients.
services.
6.2 Explain the impact of culture on the way that
2.2 Explain the role of the insurance broker in
business is conducted by an insurance broking
negotiating and placing insurance contracts.
organisation.
2.3 Explain the role of the insurance broker in selecting
6.3 Describe how insurance brokers handle complaints.
insurers.
6.4 Explain how errors and omissions occur and are
2.4 Explain the role of the insurance broker in the design
reported and handled in insurance broking
and operation of insurance programmes.
organisations.
2.5 Describe the role of the insurance broker in the
6.5 Explain the issues relating to mis-selling of insurance
claims process.
products.
2.6 Describe the role of the insurance broker in
supplying additional services.
2.7 Explain the role and responsibilities of the insurance
broker in relation to delegated authority agreements.

3. Understand contract and agency in

relation to insurance brokers and their
client.
3.1 Describe the duties of an insurance broker as an
agent.
3.2 Explain how conflicts of interest could arise in
relation to insurance broking business and how to
deal with them.
3.3 Describe the items that should be included in a
Terms of Business Agreement (TOBA) between
insurance brokers and insurers, and between
insurance brokers and their clients.

4. Understand the key legal and regulatory

issues affecting insurance brokers.
4.1 Describe the role of the Financial Conduct Authority
in the regulation of insurance brokers.
4.2 Explain the importance of achieving positive
customer outcomes and the fair treatment of
customers.
4.3 Describe the purpose of the Insurance: Conduct of
Business sourcebook (ICOBS) and the application to
insurance brokers.
4.4 Explain the importance of training and competence
within insurance broking organisations.
4.5 Explain the responsibilities of insurance brokers in
relation to sanctions checking, money laundering,
bribery, corruption and with regards to the
Employers' Liability Tracing Office (ELTO).

Published October 2020 2 of 4

©2020 The Chartered Insurance Institute. All rights reserved.
 Reading list An examination of factors leading to a “hard”
or “soft” insurance market. Ian Searle.
The following list provides details of further Insurance accounting (general business). Ian
reading which may assist you with your
studies. Hutchinson, updated by Alex Barnes.
Recent developments to Solvency II. Brad
Note: The examination will test the
syllabus alone. Baker.
The reading list is provided for guidance The professional liability of insurance
only and is not in itself the subject of the brokers. Christopher Henley, updated by
examination. Simon Kemp and Michelle Radom.
The resources listed here will help you Journals and magazines
keep up-to-date with developments and Insurance age. Incisive media. Monthly.
provide a wider coverage of syllabus topics.
Contents searchable online at
www.insuranceage.co.uk.
CII study texts
Insurance broking fundamentals. London: Insurance day. London: Informa. Daily
CII. except weekends. Articles searchable online
Study text I10. at www.insuranceday.com.
Insurance times. London: Newsquest
Books (and ebooks)
Specialist Media. Weekly. Contents
‘Claims against insurance brokers’. Chapter
searchable online at
16 in Insurance claims. 4th ed. Alison
www.insurancetimes.co.uk.
Padfield. Tottel, 2016.
Financial adviser. London: FT Business.
Insurance brokers: an industry accounting
Weekly. Available online at
and auditing guide. 5th ed. M Grice, S
www.ftadviser.com.
Ouarbya. London: CCH Wolters Kluwer,
2013. Money marketing. London: Centaur
Communications. Weekly. Available online at
‘Intermediary responsibility’. Chapter:
www.moneymarketing.co.uk.
Insurance disputes. 3rd ed. Jonathan Mance
et al. Informa, 2011. Post magazine. London: Incisive Financial
Publishing. Monthly. Contents searchable
‘Lloyd's brokers and other agents of the
online at www.postonline.co.uk.
assured’. Chapter in Lloyd’s: law and
practice. Julian Burling. Oxon: Informa Law, Reference materials
2014.* Concise encyclopedia of insurance terms.
The law of insurance broking. 3rd ed. Laurence S. Silver, et al. New York:
Christopher Henley. London: Sweet & Routledge, 2010.*
Maxwell, 2016. Consumer Insurance (Disclosure and
The law of insurance contracts. Malcolm A Representations) Act 2012. London: HMSO,
Clarke. 6th ed. London: Informa, 2009. 2012. Available via www.legislation.gov.uk.
Winning client trust : the retail distribution Data Protection Act 1998. Available via
review and the UK financial services www.legislation.gov.uk.
industry's battle for their clients' hearts and Dictionary of insurance. C Bennett. 2nd ed.
minds. Chris Davies. London: Ecademy London: Pearson Education, 2004.
Press, 2011.* Insurance Mediation Directive. Brussels:
Factfiles Office for Official Publications of the
The Insurance Institute of London (IIL) European Communities, 2002. Available via
podcast lecture series features leading http://eur-lex.europa.eu.
industry figures and subject experts ‘Regulation’. Chapter: Insurance broking
speaking on current issues and trends practice and the law. Looseleaf, updated.
impacting insurance and financial services. Cameron McKenna.
Available online at https://www.cii.co.uk/ ‘The broker’s role and duties owed in the
insurance-institute-of-london/ (CII/PFS claims process’. Chapter: Insurance broking
members only).

* Also available as an ebook through Discovery via www.cii.co.uk/discovery (CII/PFS members only).

Published October 2020 3 of 4

©2020 The Chartered Insurance Institute. All rights reserved.
 practice and the law. Looseleaf, updated.
Cameron McKenna.

Examination guide
If you have a current study text enrolment,
the current examination guide is included
and is accessible via Revisionmate
(www.revisionmate.com). Details of how to
access Revisionmate are on the first page of
your study text.
It is recommended that you only study from
the most recent version of the examination
guide.

Exam technique/study skills

There are many modestly priced guides
available in bookshops. You should choose
one which suits your requirements.
The Insurance Institute of London holds
a lecture on revision techniques for CII
exams approximately three times a year.
The slides from their most recent lectures
can be found at www.cii.co.uk/iilrevision
(CII/PFS members only).

Published October 2020 4 of 4

©2020 The Chartered Insurance Institute. All rights reserved.