The Challenge
An IT services firm was blindsided by a serious cyber breach. The immediate impact was financial and reputational: insurance premiums more than doubled, renewal policies carried exclusionary language that offered little real protection, and the company lacked the resources to keep pace with an evolving cyber threat landscape. Worse, its reputation took a hit, undermining client trust and leaving the business vulnerable on multiple fronts.
The Approach
SeCAP engaged on two levels—technical and insurance strategy—to restore control and create resilience.
- Technical Strategy: Using licensed penetration testing tools, SeCAP identified vulnerabilities and mapped remediation efforts against the NIST Cybersecurity Framework 2.0. This provided a roadmap to close both current and emerging gaps.
- Insurance Strategy: SeCAP established a sponsored captive insurance company owned by the client. By funding upfront costs for corporate structure, governance, and regulatory compliance, and providing reinsurance along with actuarial, underwriting, and legal support, SeCAP enabled the client to stabilize premiums, customize policy language, and regain control over risk financing.
The Response
With its own captive structure in place, the company began funding premiums internally while building surplus reserves. Each year, $420,000 in surplus was allocated toward strengthening cyber defenses, including patching, Risk-Based Vulnerability Management (RVBM), and establishing a Security Operations Center (SOC).
This dual investment strategy—technical upgrades paired with financial independence—restored customer confidence. Clients could see proactive, transparent steps to protect data and ensure long-term stability.
The Results & Takeaways
- Control over Risk & Capital: Captive insurance converted premium spend into retained capital, giving the client true independence from market volatility.
- Cost Efficiency: By avoiding inflated market rates and exclusions, the company reduced expenses while broadening coverage.
- Cybersecurity Investment: Surplus was reinvested in frontline defenses, transforming the firm’s posture from reactive to resilient.
- Reputation Rebuild: Visible, verifiable remediation efforts reassured Fortune 1000 customers and protected brand equity.
- Strategic Partnership Value: SeCAP’s blend of technical expertise and fiduciary oversight created a sustainable model for long-term risk management.