I first thought that changing the size of your cursor might make it better, and I made a recording using Camtasia to show you what I see. But look what Camtasia made:
Annotation recording using Camtasia
This replicates what you describe but it's not what I see on my computer. I recorded the same thing using my iPhone:
Annotation screen recording with iPhone
Though the video quality is poor, it's not too hard to see that the cursor does not block the text.
Okay, after spending way too much time figuring out how to make smaller GIF files out of videos shot using my iPhone (Adobe not Camtasia), I think the solution is to play with the settings for the cursor size on your computer.
I’m going to mark my response as a solution, but there can be more than one. I hope our colleagues here in the Community can share other options for helping you.