First of all, congratulations on continuing your CII qualification journey.
LM2: London Market Insurance Principles and Practices is the second unit in the Certificate in London Market Insurance and builds directly on the foundations you established in LM1. While LM1 focuses on what the London Market is and why it operates as it does, LM2 shifts the focus to how it works in practice.
Think of it as LM1 introducing you to the rules of the game and LM2 showing you how those rules are applied day to day across real risks, real placements, and real claims.
As you explore the principles and practices of life in the London Market, you’ll naturally start to link back to what you learned in LM1. The connections between theory and practice become clearer as you see how legal and regulatory frameworks are applied in real market scenarios. You should also recognise many of the processes as activities you already carry out in your role, just formalised and structured using CII terminology.
LM2 takes the core concepts from LM1 and applies them across the operational reality of the London Market. You’ll explore how risks are placed, shared, managed, and settled, and why London remains a global centre for complex and specialist insurance.
This unit is far more applied and scenario-based than LM1. You’re expected not just to know definitions, but to understand how principles operate in real market situations.
LM2 is a multiple-choice exam consisting of 55 multiple choice questions (MCQs) and 4 case studies, each comprising 5 (MCQs). You’ll have 2 hours to complete the exam remotely or in a CII test centre and achieve the pass mark of 70%.
The average pass rate for learners completing LM2 is currently 71.24%, so nearly 1 in 4 candidates defer success on their first attempt.
LM2 is often underestimated.
Because it follows LM1, many learners assume it will feel similar, but the step up is noticeable. Questions are more applied, terminology is more technical, and you’ve got the case study style questions to contend with which test application of your knowledge to a scenario.
It’s not that LM2 is harder, it’s that it requires deeper understanding and a different exam technique for those case study questions.
We’re not trying to scare you off – promise! We just want you to know what to expect.
We get that the first module is tough, but the key is to break big tasks into smaller steps, so the whole process feels less daunting.
Don’t forget the multiple-choice questions work in exactly the same way as those in LM1 so your approach to these doesn’t change. The case study style questions are still multiple choice as well (so same format as LM1 again) it’s just that they’re linked to a scenario.
We’ve included a link to a sample case study style question below so you can see what you’re up against.
You’ve already had experience of a CII exam from LM1 so as with your prep for that, break big tasks down into smaller steps, so the revision process feels less daunting. Don’t worry if everything doesn’t land immediately, the aim is familiarity with the language, structure, and scope of the syllabus.
LM2 content builds gradually, so early chapters often make more sense once you’ve seen the full picture.
The textbook is over 300 pages long, so if you’re not big on reading, you might want to consider other options. Although the CII doesn’t offer an audio version, apps like ElevenReader let you upload the PDF and will read it aloud for you, perfect for listening while commuting or enjoying a walk!
Give our Study Guide a try as an alternative to the CII’s textbook. It offers a more interactive learning experience, packed with:
Once you’ve finished reading for the first time, try taking a practice test, even if it seems too soon. It will help reveal which parts you already understand, and which areas could use more attention.
Our Study Buddy app includes practise exam-style questions which can be used as a full mock test or learning outcome by learning outcome. You can use it on the go at any point during your revision to test your knowledge but at this stage we suggest using the web version to sit a full mock test as it simulates more of the real-life exam feel.
Now it’s time to revisit each chapter…
An effective approach to your LM2 revision is to divide the material into manageable sections and establish achievable deadlines for each.
The most effective approach is to develop a study plan. Begin by reviewing the number of chapters in the book, mapping each chapter to relevant learning outcomes, and identifying areas requiring increased attention based on your mock test results.
Rather than simply assigning one chapter per week for study, consider that some chapters are lengthier, others carry greater weight in examinations, and certain sections may already be familiar from your initial review and practice test.
Essentially what we’re saying here is use your time wisely and don’t waste it on a smaller chapter that you’re already comfortable with and only has a couple of questions in the exam!
With your study plan ready, it’s time to follow it – easy as that, right?
Read each chapter thoroughly, highlight key points, and research any unclear topics. Use YouTube and the CII channel for quick explanations, and attend workshops and/or webinars to hear experts bring topics to life and discuss real-world applications.
Remember to test yourself at the end of each chapter or learning outcome.
Now it’s just repeat process, chapter by chapter until you get to the end and you’re ready to sit your exam.
We’ll leave you with some final hints and tips…good luck!!
And (thank us later) we’ve even created an LM2 study plan for you, showing how long to spend on each learning outcome. Use it as a base and add time for regular chapter mocks using the Study Buddy app.
“I recommend starting revision early, breaking down the material into smaller chunks and making sure you review it regularly.”
“Make a plan and spend enough time on it. Cramming won’t work with the amount of content there is here”
“Prior to revising, understand what kind of learner you are to best utilise your time. Spend time understanding the content as opposed to just reading through it, and take breaks to reset.”
“After reading a chapter, summarising it in your own words helps show how much you understand.”
“Definitely use revision/flash cards, in particular for the terminology elements of the modules.”
“I use the pomodoro technique which is very useful when faced with an uphill study battle.”
“Make use of all of the available practice questions, tests and other resources.”
Watch this short video to see our top tips for planning, preparing for and passing your LM2 exam remotely…
We also suggest exploring the CII’s assessment guide, which provides all the essential information you need to prepare for your exam, whether you’re taking it remotely or at a test centre. The guide covers details on booking your exam and when you can expect your results.
Finally, remember, no one learns the principles and practices of the London Market overnight, so don’t be too hard on yourself. You’re not alone – we’re here to support you!”
Good luck!
View Our LM2 Study Support, including:
Chat with other LM2 candidates in the dedicated BTS LM2 online forum room to help keep up to date, find out any new information and gain help and advice from others.
For more information on LM2 view the CII info and resources for the LM2 Exam
