20 Mar 2014: PPF announces new insolvency risk model
The model has been developed with credit bureau Experian who replaced Dun & Bradstreet as the PPF’s new insolvency risk score provider last July. 
The PPF intends to publish a consultation document on the new model at the end of May this year.  PPF Director of Financial Risk, Martin Clarke, said: “after expert analysis involving industry and other advisors, we believe that this PPF-specific model will provide scores which more accurately reflect the insolvency risk of those employers whose schemes pay the pension protection levy.”

Argyll comment:  From the initial appointment of Dun & Bradstreet at the PPF’s inception, the PPF has worked with Dun & Bradstreet to adapt its models to the population of scheme sponsors, taking into account feedback from market participants.  Although not technically a State body, the PPF nonetheless performs a role similar to a State body and so it was inevitable that it would need to re-tender the insolvency risk provider appointment.  However such a change in provider, bringing in its own bespoke methodologies, means that schemes’ insolvency scores could change materially simply due to the involvement of another provider.  It is our hope that a model that is developed to be specific to the PPF's requirements can continue to be used by subsequent providers to improve the stability of the risk scores.  This is one of the key points we will be looking for in the consultation document.

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