Sixty Second Summary
PPF insolvency risk from 2021/2022
15 Jan 2020 - Estimated reading time: 1 minute
Please see excerpts below from our latest Sixty Second Summary. To download the complete summary please click here.
The PPF has published a consultation on changes to the insolvency risk scoring methodology and the move from Experian to Dun & Bradstreet (D&B) for insolvency risk services. It is proposed that D&B scores will be used from April 2020 to March 2021 for the 2021/22 levy year. The consultation is expected to be finalised before April 2020, when the new scores commence.
Insolvency risk services from D&B
The PPF has proposed that the same scorecard methodology and key variables, subject to some minor changes, will be used to determine Pension Protection Scores. The PPF has also launched a new online portal, which has a new look and feel, so stakeholders can access indicative D&B scores in the lead up to April. Users who are currently registered for the Experian portal will receive an automated email invitation to access the new D&B portal.
Updating the PPF insolvency risk model for D&B data
D&B’s model produces the same outputs when the same data is input, but there are a number of differences between Experian and D&B’s data, relating to differences in the approaches to data collection, data matching and data on corporate linkages.
It is important to note that there are substantial gaps in D&B’s data which will need to be filled in, but the PPF has provided some analysis on the possible impact.