Over the years, captive insurance companies have become an accepted method for risk financing. However, at this point, conventional wisdom has indicated that a protracted soft, insurance market would have a chilling effect on captive use. Without question, the current soft market has been extended much longer than most industry observers had thought. Having to deal with the adverse effects of the financial crisis has been challenging for most insurers/reinsurers. Despite the soft insurance market, estimates still show that over 50% of the commercial insurance market is in some type of alternative risk transfer mechanism. While coverage availability is rarely an issue today, affordability is still a problem in some lines of coverage. So, while it is obvious that the soft market has taken its toll on the captive movement, it is much less about the captive concept than about the credit availability issue.