BIA Non-Life Insurance Diploma study guide
BIA Non-Life Insurance Diploma · Work through your exam, one topic at a time.
The BIA Non-Life Insurance Diploma is a professional qualification for people building a career in general (non-life) insurance - typically underwriters, claims handlers, brokers, account managers and operations staff who want a structured, exam-tested grounding in the sector rather than isolated on-the-job learning. It suits newcomers consolidating early experience as well as experienced practitioners moving between lines of business or into supervisory roles. The BIA Non-Life Insurance Diploma study guide has 11 sections and about 3,232 words.
01Insurance Principles and the Non-Life Insurance Market
Non-life (general) insurance transfers the financial consequences of uncertain events from the policyholder to the insurer in return for a premium. Candidates must be able to explain insurable interest , utmost good faith , indemnity , subrogation and contribution , and distinguish them from the doctrines that apply only to life business.
337 words, about 2 min02Insurance Law
Non-life insurance sits on the general law of contract plus specific insurance statutes and case law. Candidates must understand offer and acceptance , consideration , intention to create legal relations , and the duty of fair presentation of risk.
337 words, about 2 min03Insurance Law, Regulation and Market Conduct
Candidates must know the role of the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) in the UK, or the equivalent split in other jurisdictions. The PRA focuses on safety and soundness and solvency; the FCA focuses on conduct, market integrity and consumer protection.
245 words, about 1 min04Risk and Underwriting
Candidates must distinguish pure risk (only loss or no loss) from speculative risk (gain or loss), and fundamental from particular risk. Understand frequency and severity , and how their combination drives pricing and retention decisions.
301 words, about 2 min05Policy Wording, Cover and Conditions
Candidates must be able to navigate a policy document: recitals , definitions , insuring clauses , exclusions , conditions , warranties , limits and endorsements . The definitions section is the most common source of exam traps because words like 'accidental', 'sudden', 'building' and 'employee' carry precise meanings.
258 words, about 1 min06Property and Business Interruption Insurance
Candidates must understand fire , special perils , all-risks and theft covers, and the difference between indemnity (replacement less depreciation) and reinstatement (new-for-old) bases. Know day-one reinstatement , declaration-linked and floating sum insured arrangements.
278 words, about 1 min07Liability Insurance
Candidates must understand public liability , products liability , employers' liability , professional indemnity and directors' and officers' cover. Liability insurance is written on an occurrence basis or a claims-made basis.
264 words, about 1 min08Motor and Personal Lines Insurance
Candidates must understand compulsory third-party cover, third party fire and theft , and comprehensive cover. Know the Road Traffic Act requirements and the role of the Motor Insurers' Bureau for uninsured and untraced drivers.
256 words, about 1 min09Reinsurance and Risk Transfer
Candidates must understand treaty and facultative reinsurance, and the difference between proportional (quota share, surplus) and non-proportional (excess of loss, stop loss) arrangements. Know the purpose of reinsurance: capacity , catastrophe protection , stabilisation , financing and expertise .
230 words, about 1 min10Claims Handling and Fraud
Candidates must understand the lifecycle: notification , validation , investigation , quantum assessment , settlement and recovery . Know the requirements for prompt notification , cooperation , proof of loss , mitigation and subrogation .
262 words, about 1 min11Financial Management, Reserving and Solvency
Candidates must understand the balance sheet , income statement and cash flow statement for an insurer. Key items: technical provisions , unearned premium reserve , outstanding claims reserve , IBNR , equalisation reserves , investments and shareholders' funds .
464 words, about 2 min