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CII M92

M92

Exam Code: M92

Exam Name: Insurance Business and Finance (IBF)

Updated: Sep 07, 2026

Q&A Number: 84 Q&As

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CII M92 Exam Syllabus Topics:

SectionWeightObjectives
Underwriting and Pricing20-25- Claims handling overview
- Pricing factors and methods
- Underwriting principles and process
- Risk assessment and classification
The Insurance Market and Business Environment20-25- Structure of the insurance market
- Insurance intermediaries and distribution channels
- Regulatory and legal framework
- Market competition and segmentation
Financial Management of Insurers25-30- Capital management and solvency
- Solvency II framework
- Financial statements and accounts
- Investment management
- Premium reserves and claims reserves
Legal and Regulatory Requirements15-20- Data protection and compliance
- Prudential regulation
- Consumer protection requirements
- Conduct of business regulation
Business Strategy and Operations10-15- Strategic planning for insurers
- Product development and management
- Technology and digital transformation
- Customer service and relationship management

CII Insurance Business and Finance (IBF) Sample Questions:

Question 1

It has been deemed essential that the Information Technology (IT) department have a broad role, working closely with the business. If the IT department are to fulfil its role within the company, it must

A. operate entirely independently from day-to-day operations.
B. make a proactive contribution to the development of business strategy.
C. outsource all non-core functions.
D. report directly to the internal audit function.


Question 2

What information must be used to calculate the return on equity?

A. Total assets and total liabilities
B. Operating costs and investment income
C. Gross written premium and net income
D. Profit after tax and capital


Question 3

What scope of risks within risk management is likely to be affected by the London office's financial issues and the need to sell off the New York office?

A. Operational
B. Market
C. Strategic
D. Group


Question 4

What is the primary function of financial accounting?

A. To report the financial position to all stakeholders.
B. To ensure regulatory capital is minimized.
C. To provide management with internal budgets.
D. To calculate the technical premium for products.


Question 5

The acquisition of a specialist panel of loss adjusters by an insurer is an example of what?

A. Horizontal Diversification
B. Horizontal Integration
C. Vertical Integration
D. Conglomerate Diversification


Solutions:

Question 1
Answer: B
Question 2
Answer: D
Question 3
Answer: D
Question 4
Answer: A
Question 5
Answer: C

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