Insulated underground cables have the potential to reduce power outages, maintenance costs, and transmission losses compared to overhead lines. On the other hand, they are exposed to several risks and physical damages, since they are buried in the ground. Though the cables are armoured in order to provide mechanical protection and achieve tensile strength, and also to provide effective conductance of earth fault currents. The main purpose of this paper is to introduce insulated underground cables, armouring process, and to analyze the induced currents in metallic parts such as sheath and armour that causeohmic losses which are categorized mainly in two groups as circulating current and eddy current. This paper presents a review on analytical techniques used to analyze the effect of magnetic fields, andcalculate the losses in the armour of the cables, besides providing the strategies and solutions used for armour loss reduction.