ANV Founder Matt Fairfield recently told WRIN.tv that Municipal Pension Funds could be the next “black swan” facing the insurance industry. He suggests there may be “blood on the streets and civil unrest” in the wake of potential defaults. In fact, Detroit will be the largest municipal bankruptcy in U.S. history, with the city’s debt estimated at $18–20 billion. Lawmakers are concerned that the crisis could spread to other municipalities.
WRIN.tv contributor Ty Sagalow, president of Innovation Insurance Group, assesses the size of the municipal pension problem, as well as the potential for a joint private/public solution built on the insurance industry’s existing pension fund liability coverage.
Ty Sagalow is host of Innovations in Insurance, a WRIN.tv series focusing on new product development. To watch previous editions of Innovations in Insurance, visit the WRIN.tv On Demand Library.