Sodalis Capital has launched Brecon Specialty, a London-based brokerage focused on global cyber and technology errors and omissions (E&O) risks.
The company will provide broking and risk advisory services to other independent brokers, as well as to direct clients. The firm will concentrate on cyber and technology E&O placements, using London market and Lloyd's capacity.
Brecon starts with a 14-strong team led by CEO David Rees and more than 100 years of combined market experience. The broker will operate on Pro Insurance Solutions’ platform and trade through Lloyd’s, giving it operational scale from day one while retaining an independent, specialist positioning.
The launch follows Sodalis’ recent debut with backing from B.P. Marsh and Alliant, each taking a significant minority stake to support a buy-and-build strategy across specialist underwriting and wholesale broking groups. Sodalis is led by Colin Thompson, the founder and former group CEO of Kentro Capital, signalling that the group aims to build a multi-asset intermediary platform rather than a one-off venture.
Rees said the new business has been set up to provide an independent, cyber-focused alternative in the London market, with an emphasis on technical broking and access to capacity for both producing brokers and insureds. He pointed to the combination of Sodalis’ capital and infrastructure, Lloyd’s access and a concentration of cyber expertise as the foundations for Brecon’s proposition.
Thompson has previously described cyber and technology E&O as one of the most strategically important segments in specialty lines, arguing that a focused, independent broker backed by long-term capital is well placed to compete with larger global houses in complex placements.
Brecon Specialty enters a cyber and tech E&O market that is both expanding and becoming structurally more challenging. Global cyber insurance premium is estimated to be in the mid-teens as of 2024, with supervisors and rating agencies expecting mid-single- to low double-digit annual growth over the next few years as take-up increases among mid-market and large corporates.
The loss environment remains volatile. Ransomware continues to be the dominant driver of claims, even as incident counts have stabilised in some markets. Fewer successful attacks are generating higher average loss costs, particularly in sectors such as manufacturing, healthcare and critical infrastructure. Data exfiltration and multi-extortion tactics are increasingly replacing straightforward encryption as the primary extortion method, making claims more complex to adjust and increasing pressure on policy wordings and incident response.
Pricing has adjusted accordingly. After steep rate rises between 2021 and 2023, cyber insurance rate momentum has moderated in 2024 to 2025, with some mature markets seeing flat or slightly lower pricing, particularly for insureds able to demonstrate strong cyber controls. Capacity has broadened, with new syndicates and facilities entering the class and established writers expanding line sizes, but typically with tighter underwriting, more granular security requirements and sub-limits on systemic or high-aggregation exposures.
London remains a key hub for specialty risk, including cyber, with Lloyd’s and the company market providing layered and excess capacity, complex wordings and solutions for cross-border technology exposures that are difficult to place domestically.
Independent brokers and regional intermediaries often look to London specialists to structure towers, access larger line sizes and negotiate bespoke terms on issues such as business interruption triggers, contingent business interruption, system failure and contractual liability in tech E&O. Brecon Specialty is positioning itself in this space as a broker-to-broker and direct client specialist that understands both the technical risk landscape and evolving London market appetites.
The firm’s initial focus on cyber and technology E&O suggests an intent to build deep product expertise before considering any move into adjacent classes.
The launch is another sign of how investor-backed platforms are reshaping the intermediary landscape in specialty lines. Sodalis joins a growing list of private-capital- and trade-backed groups targeting MGAs and specialist brokers as scalable, capital-light assets, with cyber and tech E&O seen as core growth engines.
