For traditional insurers looking to recapture some of the business lost to the alternative market, specifically the captive market, all bets are off.Ã‚ Or at least the going may be getting tougher. Despite increased competition and soft pricing, growth in captive insurers remains strong, and a new study from Aon indicates there is room for further growth Ã¢â‚¬“ substantial growth at that. According to Aon, contrary to popular belief, over half (53 percent) of the worldÃ¢â‚¬â„¢s top 1500 companies (G1500) do not currently own a captive. Regionally there is considerable room for captive growth. Even in a mature market like the U.S., captive ownership by G1500 companies is at just 42 percent. In markets like Asia that traditionally have not been extensive captive users, the percentages are lower. Only 14 percent of Japanese G1500 companies have a captive for example. Captives are the oldest form of alternative risk transfer vehicle, dating back to the 1950s. Direct access to reinsurance markets, tailored coverage, and greater control over claims are just some of the reasons why corporations form captives. Cost or lack of coverage in the traditional market is another. Check out I.I.I. info on captives and alternative risk transfer mechanisms online.