Alternative Insurance Markets are mechanisms used to fund self-insurance. This includes captives, which are insurers owned by one or more non-insurers to provide owners with coverage. Risk-retention groups, formed by members of similar professions or businesses to obtain liability insurance, are also a form of self-insurance.
Alternative markets are available for many types of insurance risks faced by various types of businesses and certain types of industry. This typically includes the nursing home industry and contractors in the building industry. Industry groups such as these that are difficult or expensive to insure can become their own insurer to save money.