Mounting geopolitical risk and economic uncertainty promises greater demand for safe assets—dollars. So far, the US remains wedded to the US performing this safe haven role, but there is a limit to how much foreign debt the US can take on without investors taking fright. When they do, the world will face either a global financial crisis and dislocation—there are no obvious alternatives to the dollar—or a shift to managed competition between international reserve currencies. However, it comes about, insurers need to prepare for a time in which the dollar no longer reigns supreme.
