New Bloomberg Data License solution to help US insurance
companies and impacted asset managers navigate the bond
reclassification requirements ahead of the January 2025 compliance deadline
NEW
YORK, June 27, 2024 /PRNewswire/ -- Bloomberg
today announced the launch of its Bond Classification Regulatory
Data Solution which automates the classification of bonds under the
new rules of the National Association of Insurance Commissioners'
(NAIC) Principles-Based Bond Project (NPBB).
Effective starting January 2025,
the new rules will require insurers of all types to classify their
bonds as issuer credit obligations, asset-backed securities, or
neither in determining whether the security is eligible to be
reported as part of Schedule D. To meet this new requirement,
insurance firms and asset managers with insurance company exposure
will need to quickly and systemically classify these exposures,
both before buying, and while holding these securities. The result
of these classifications will eventually impact firms' capital
requirements as these are based on the proportion of assets that
meet the definition of a bond.
"To make these classification decisions effectively and at
scale, insurance companies and asset managers would need to source
multiple data feeds and develop new manual processes. Our clients
approached us looking for an automated solution to help streamline
these operational requirements and avoid any year-end congestion or
potential costly oversights with inaccurate reclassifications,"
said Leila Sadiq, Global Head of
Enterprise Data Content at Bloomberg. "Our breadth of data and
detailed rule engines enabled us to deliver a timely solution,
which assists client's accounting, compliance and legal teams in
determining which holdings should be categorized as
principles-based bonds or other assets. The architecture of this
solution is highly flexible so that it can rapidly adapt to changes
stemming from any future guidance."
Bloomberg's Bond Classification Data Solution provides
indicators that specifically aim to communicate whether a security
meets the guidance provided by the NAIC and found in the Statement
of Statutory Accounting Principles No. 26. The solution uses a wide
variety of data attributes to test bonds and provides both the
determination result as well as the specific attribute that
qualifies the security for the new classification. Bloomberg
additionally provides a data field, in the case of asset-backed
exposures, that shows whether the instrument in question represents
a financial or non-financial asset for the purposes of statutory
reporting. Bloomberg's solution takes a data-driven approach to
automate these classifications, helping market participants to save
time and resources on appropriately categorizing their assets so
they can confidently comply with the new rules.
This regulatory solution is available to Bloomberg Data License
customers who may need to integrate it into their compliance
workflow. Clients will have the option to obtain this data per
security or as part of a bulk subscription for the entire security
universe at data.Bloomberg.com and have it delivered via SFTP, REST
API or into a cloud environment.
Bloomberg's Enterprise Data business produces high-quality
pricing, reference and regulatory datasets, real-time market, event
and news data, and liquidity analytics along with data management
and distribution technologies. For more information, please visit
our website here.
About Bloomberg
Bloomberg is a global leader in business and financial
information, delivering trusted data, news, and insights that bring
transparency, efficiency, and fairness to markets. The company
helps connect influential communities across the global financial
ecosystem via reliable technology solutions that enable our
customers to make more informed decisions and foster better
collaboration. For more information,
visit Bloomberg.com/company or request a demo.
Media Contact:
Jennifer Molgano
Jmolgano2@bloomberg.net
View original content to download
multimedia:https://www.prnewswire.com/news-releases/bloomberg-launches-regulatory-data-solution-addressing-naics-principles-based-bond-definition-project-302184164.html
SOURCE Bloomberg