Marine insurance is taking a significant step toward data-driven underwriting with the launch of a new Lloyd’s-backed managing general agent (MGA) by Chaucer and maritime technology firm Ceto, replacing decades of reliance on static historical data with live vessel machinery and performance intelligence.

The MGA will operate as a Lloyd’s Coverholder, with underwriting capacity provided by Chaucer’s Lloyd’s syndicate and Tokio Marine Kiln.

At its core is Ceto’s Watchkeeper platform, which continuously monitors onboard machinery and operational performance data, feeds high-frequency real-time signals directly into underwriting decisions rather than relying primarily on historic loss runs and periodic surveys.

The venture builds on an earlier delegated underwriting pilot conducted under Howden Ventures and DUAL, now converted into a fully authorised MGA structure.

With the global commercial fleet averaging more than 22 years in age, vessel age has become an increasingly unreliable proxy for actual risk, the backers of the new venture argue. Two ships of the same vintage can carry vastly different risk profiles depending on maintenance discipline, operational patterns and machinery condition – distinctions that traditional underwriting methods struggle to capture.

Tony Hildrew, CEO of Ceto, said the launch represents a structural shift in how marine risk is assessed. “We’re moving underwriting closer to the actual condition of the vessel, not just its history on paper.”

Marine hull insurance has long been criticised for pricing that inadequately differentiates between well-maintained and poorly-maintained vessels. If real-time operational data can systematically close that gap, the implications extend beyond pricing – touching loss prevention, claims frequency and ultimately the incentive structures that shape how owners maintain their fleets.