Question

Passage:
In the mid-nineteenth century, the restructuring of maritime insurance by Lloyd's Register transformed transatlantic merchant shipping. Prior to this period, underwriters relied primarily on subjective assessments of vessel captains rather than standardized metrics of vessel seaworthiness. By instituting systematic hull inspections and classifying ships based on hull composition, timber age, and structural repairs, Lloyd’s established an objective risk-rating scheme. This categorization dictated differential insurance premiums, effectively penalizing shipowners who neglected vessel maintenance. Consequently, merchant fleets underwent rapid modernization, as older wooden vessels were systematically refitted or phased out in favor of iron-hulled ships. However, economic historians note that this transition was not without market distortions. Because classification criteria heavily favored specific shipbuilding materials abundant in British yards, foreign shipbuilders faced severe financial disadvantages when seeking coverage from London underwriters. Furthermore, while the registry incentivized physical structural safety, it entirely disregarded crew competency and navigation technology—factors that contemporary marine logs suggest contributed equally to shipwrecks. As a result, shipowners often invested heavily in structural compliance while ignoring navigational training, producing a paradoxical era where structurally sound ships continued to flounder due to preventable human error.

According to the passage, which of the following was NOT a characteristic or outcome of the risk-rating system introduced by Lloyd's Register?