CII M92 : Insurance Business and Finance (IBF)

  • Exam Code: M92
  • Exam Name: Insurance Business and Finance (IBF)
  • Updated: Sep 10, 2026
  • Q & A: 84 Questions and Answers

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CII M92 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Understand the structure of the insurance industry10%- Main sectors and participants
- Market distribution channels
- Regulatory framework and bodies
Topic 2: Understand insurance company accounts and standards10%- Statutory and regulatory reporting
- Specific accounting rules for insurers
- Solvency and capital reporting
Topic 3: Case studies integrating all learning outcomes10%
Topic 4: Understand corporate governance principles12%- Compliance and ethical requirements
- Risk management frameworks
- Governance structures and responsibilities
Topic 5: Understand roles and functions within insurance organisations8%- Key departments and their interactions
- Professional roles and responsibilities
Topic 6: Analyse business performance using financial ratios10%- Interpretation and limitations of ratios
- Solvency and liquidity measures
- Profitability and efficiency ratios
Topic 7: Understand financial strength of insurance companies10%- Capital adequacy requirements
- Rating agencies and financial assessments
- Reserving and risk capital
Topic 8: Understand insurance business management12%- Underwriting and claims processes
- Operational activities and controls
- Business objectives and strategy
Topic 9: Understand accounting principles and application18%- Basic accounting concepts and standards
- Asset and liability recognition
- Income, expenditure and profit measurement

CII Insurance Business and Finance (IBF) Sample Questions:

Question 1

An insurance company uses the double-entry accounting principle for recording insurance transactions to reflect that it has

A. paid a claim and reduced its asset base.
B. earned an amount of income which is balanced by an increase in cash.
C. revalued its fixed assets.
D. created a new liability that reduces equity.


Question 2

The calculation kernel is an essential element of

A. A management information system's control cycle.
B. The double-entry accounting system.
C. The Solvency II internal model capital assessment.
D. Activity-based costing.


Question 3

For what transactions are debit notes raised?

A. Only for claims payments to third parties.
B. All amounts owed to the business by other parties.
C. For all incoming cash payments from policyholders.
D. When transactions are settled in a foreign currency.


Question 4

An insurance company uses the double-entry accounting principle for recording insurance transactions to reflect that it has what?

A. Increased its liabilities without a change in assets.
B. Reduced its equity by paying a dividend.
C. Received a payment for a claim.
D. Earned an amount of income which is balanced by an increase in cash.


Question 5

Under which Act would it be a civil offence if Mark were to sell his shares following information obtained in May?

A. Financial Services and Markets Act 2000
B. The Bribery Act 2010
C. Data Protection Act 2018
D. Companies Act 2006


Solutions:

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

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