Geopolitical risks, claims inflation impact capital deployment in reinsurance market

According to A.M. Best Co. Inc., the global reinsurance market remains well capitalized, but market players are still cautious about deploying their capital, Reinsurance News reported. Despite high demand and price hikes, few investors feel comfortable deploying capital amid continued geopolitical tensions, interest rate hikes, elevated catastrophe activity, claims inflation, asset market volatility and fear of recession.