SeCAP, at the sole discretion of the client, may have the sponsored captive offer coverage for attacks initiated by individuals, foreign entities, nation-state actors and all other forms of online threats. The client may opt to include coverage for expenses like legal fees, credit monitoring, and data recovery and damage to brand.
Traditional Cyber security insurance can cover a range of expenses related to a cyber attack or data breach, including legal fees, credit monitoring, data recovery, and business interruption losses. However, many traditional insurance providers will not cover attacks from foreign entities, nation-state sponsored attacks. Further, many traditional providers will restrict honoring claims where the client has not produced proof of frame work compliance and remediative steps to address cyber security.
SeCAP sponsored captive clients can opt to write policy language to extend coverage for all general enterprise insurance needs. SeCap provides actuarial consultancy services for all clients in any industry.
As Part of SeCAP sponsored captive advisory, SeCAP provides a soft penetration test service that is mapped to NIST 2.0 framework standards. SeCAP works to identify any gaps in a client cyber posture before the client captive is formed.
SeCAP offers a managed self-insurance structure (commonly referred to as a “captive”). A captive by definition is an insurance company owned by the company being insured. SeCAP provides an eco system of experts in technical, legal , regulatory, accounting and actuary so companies may benefit from policy flexibility and potential financial benefits.
SeCAP sponsored captive insurance companies help clients identify where they are at risk with a free Attack Surface Management (ASM) discovery. An ASM discovery identifies where a client is at risk and what remediation steps need to be taken in order to strengthen the client security posture. Further, SeCAP has over 500 participants in our eco system that can help with professional services, monitoring, policy, etc. In essence, SeCAP is a Cyber security technical provider that advises clients on captive formation for the purpose of providing cyber insurance. We understand the technology and extend that knowledge to benefit our clients.
SeCAP cyber security policies include coverage for costs associated with regulatory compliance and reporting requirements following a data breach or other attack.
SeCAP cyber security policies cover the costs of executing a data breach response plan, including all internal and external costs necessary to restore systems and data
SeCAP cyber security policies cover legal costs associated with defending a claim or regulatory action
SeCAP covers the costs involved with managing communication and reputation in the wake of a data breach or other attack.
o Acts of War / Terrorism
o State Sponsored Attacks
o Attacks by Foreign Actors
o Intentional Acts (Disgruntled Employees)
o Non-Adherence to Industry Frameworks
Cyber Insurance is in a crisis as premiums are skyrocketing, coverage is limited and claims to often are denied or only partially paid.
We have seen this happen before starting with the Liability Insurance Crisis in the mid 1980’s as General Liability premiums skyrocketed over 300%.
Also, with the Medical Liability crises as the advent of significant malpractice suits came about in the 1970’s. This was one of the first events that led to insureds seeking relief by forming captives frequently in foreign countries.
This crisis continued with healthcare providers experiencing increased premiums of 50-100% in the mid 80’s. This has put a significant dent in producing new doctors and specialists as they often can’t afford the coverage to have a profitable practice.
Captives stabilized until September 11 happened. This new Terrorism Risk has escalated from attacks on infrastructure and now including cyber terrorism attacks over the internet.
The United States giving more favorable regulatory and economic policies has increased US based captives by 71% since 2020 with Vermont, Utah, and Delaware having the most captives while foreign domiciles have decreased over 15%. This is due to the continued scrutiny of offshore financial arrangements due to money laundering and terrorist activities.
