White-Labeled Insurance Product – Cyber Liability
The Problem:
A U.S.-based management consulting firm operated an insurance agency subsidiary serving professional services clients. Facing rising demand for cyber liability insurance, the agency sought to launch a white-labeled product but lacked internal underwriting expertise, regulatory capabilities, and a risk management structure to protect the parent consulting firm from large cyber liability exposures.
The Solution:
The agency partnered with Nova through its Agency Program, leveraging an SPC structure in the Cayman Islands, focusing on:
- Underwriting and Pricing Analysis: Developed sector-specific models for cyber risks, including ransomware and phishing attacks.
- Program Structure:
- Retained minor claims (under $100,000).
- Reinsured major breaches (above $1M) at facultative rates 35–40% lower than domestic market pricing.
- Regulatory Advisory: Ensured full compliance across multiple U.S. states for licensing and disclosure requirements.
- White-Label Back-End: Nova managed all backend underwriting, claims, compliance, and financial administration, enabling agency branding.
- Legal Separation: The SPC structure isolated liabilities, protecting the consulting firm’s broader operations.
The Benefits:
- Market Competitiveness: 20% client growth through differentiated cyber insurance offerings.
- Regulatory Confidence: Streamlined multi-state compliance administration.
- Risk Protection: Consulting operations remained insulated from large cyber risks.
- Tax Efficiency: Optimized capital retention to fund marketing and brand expansion, resulting in a 25% brand visibility increase.
- Scalability: Ready to scale with new cyber risks like social engineering fraud.
The Impact:
The agency now operates a profitable, scalable cyber insurance program that strengthens client retention, enhances market position, and generates new revenue—while safeguarding its parent company’s core operations.