Chaucer Group has partnered with maritime tech firm Ceto AI to launch a new marine managing general agent (MGA) at Lloyd’s.
Under the arrangement, Ceto is authorised to bind marine hull risks on behalf of Chaucer’s Lloyd’s syndicate, with additional capacity provided by Tokio Marine Kiln (TMK), a member of the Tokio Marine Group. The MGA will operate as a Lloyd’s coverholder.
The facility uses high‑frequency vessel machinery and performance data to inform underwriting decisions, aiming to move away from reliance on static information, vessel age and historic loss records.
With the global fleet now averaging more than 22 years in service, age and other uniform parameters “in isolation are an increasingly blunt indicator of risk”. Recent analysis from Gallagher Specialty noted that the global fleet’s average age now exceeds 22 years, driven in part by elderly tankers operating in shadow fleets and a buoyant tanker market that has delayed scrapping.That ageing profile intersects directly with sanctions enforcement, technical reliability and safety exposures.
Instead, the MGA’s model seeks to align capacity more closely with demonstrated performance and maintenance standards, supporting a more forward‑looking and differentiated approach to risk selection. The operation is underpinned by Ceto’s Watchkeeper platform, which provides machinery monitoring and predictive performance insights. It will focus on vessels capable of producing onboard machinery sensor data to support this.
“Marine insurance has historically relied on static information and historic loss data, despite vessels generating vast amounts of operational data every day,” said Tony Hildrew (pictured, left), CEO and founder of Ceto. “Working alongside Chaucer and Tokio Marine Kiln allows us to apply this capability within a disciplined, established market framework.”
Chaucer said the initiative comes as marine hull underwriters face a more challenging risk environment, shaped by ageing fleets, higher repair costs, geopolitical disruption and tightening regulation.
Recent market figures illustrate the strain. Gallagher Specialty estimated that global hull premiums rose 3.5% in 2024 to US$9.67 billion, compared with a 4% rise in global fleet values to US$1.54 trillion – a gap that has raised questions over whether pricing is keeping pace with exposure. Inflation in steel, labour and yard costs is also pushing up the cost of damage repairs and total‑loss settlements, with several vessels declared total losses in 2025.
At the same time, sanctions enforcement and the growth of “ghost fleets” moving sanctioned oil cargoes have increased the risk of detentions, diversions and coverage disputes for older or opaque tonnage, particularly where ownership and flag structures are complex.
Despite rising technical and geopolitical risk, the London hull market remains highly competitive. Gallagher reported that established carriers and MGAs continue to chase growth in preferred vessel classes, while new capacity is expected to keep pressure on rates into 2026, creating what it calls a “paradox” of elevated risk and constrained rating power.
“The marine hull market is operating in an increasingly complex environment. brought about by ageing fleets, rising repair costs, geopolitical disruption, and regulatory pressure,” said James Irvine (pictured, right), head of global marine hull lines at Chaucer. “Access to high‑quality, real‑time operational data represents a meaningful evolution in underwriting discipline."
Tokio Marine Kiln is providing additional capacity and positioning the MGA as part of its broader innovation strategy.
“The data‑led approach of this new MGA complements our focus on innovation and technical excellence,” said Rob Jarvis, divisional head of innovation and portfolio solutions at TMK. “We’re pleased to support an initiative that brings greater transparency and forward‑looking insight to marine risk.”
As sanctions, conflict‑driven route changes and ageing tonnage continue to reshape the loss environment, market watchers expect more hull underwriters to look at similar data‑enriched models to reconcile growing exposures with sustained competition on price.
