Hurricane Idalia is still live, but the storm’s track reassured market participants that it will be a relatively minor loss, although one potential wild card is the damage it will cause to Georgia and South Carolina.

The broker said economic uncertainty, climate risk and inflation were challenges for the industry.

The story will play out through bankruptcy court filings, but other exposed players and segments will be on watch for ratings agency findings and legal action.

Mark to market investment losses and decreased capital allocation in high volatility lines are contributing to an ongoing hard market for reinsurance.