The US -- and the rest of the world for that matter -- finds itself in the middle of one of the worst financial crises ever. The current financial situation has taken a toll on many sectors of the property and casualty insurance industry, and the alternative risk transfer (ART) market is just one. In the remainder of this article, the authors will try to provide a snapshot as to the current condition as well as what lies ahead for the overall ART market. Without a doubt, both the traditional ART market as well as the advanced ART market have suffered from the current condition of the overall financial market. However, despite a soft property/casualty insurance market, slow growth continues in the traditional ART segment. Many captive owners are exploring new and innovative ways to utilize their captives. However, most experts think that once hedge fund managers get more comfortable with the current landscape, growth will return to the ART market.