MACRO introduced by Swiss Re New Markets
Re Group, has introduced a new way of helping corporations deal with more holistic approaches toward financial and non-financial exposures.
MACRO (Multi-line, Aggregated and Combined-Risk Optimisation) integrates different hedging techniques to increase efficiency and stability of risk management programmes.
Swiss Re New Markets said MACRO supports centrally managed hedging strategies with a multi-year, multi-line combined risk optimisation process tailored to the needs of individual clients.
Coverage can include but is not limited to property and casualty as well as special lines and financial risks such as fluctuation of foreign exchange rates, interest rates and commodity prices.
Peter J. Fallon said, "MACRO provides substantial advantages over conventional hedging solutions. Multi-year contracts improve efficiency and provide more stable terms and conditions.
"Combining uncorrelated risk classes, such as property, casualty and fluctuations of exchange rates, interest rates or commodity prices in one loss limit reduces overall portfolio volatility, which translates into lower costs for clients.''