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...eliminating the entire system for the fears of a few is overkill
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<p>The days are numbered. The Greek system is being crushed by the rising cost and/or inability to get liability insurance, euphemistically refered to as "risk management".</p>
<p>As much as you'd like to believe that interesteddad, it is simply not the case.</p>
<p>OK. We'll see. </p>
<p>There must be some reason that "risk management" is the buzzword of every national fraternity these days and that most insurers won't touch a fraternity policy.</p>
<p>FIPG</a> - Risk Management Programming | FIPG History</p>
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*FIPG History *
For several years, starting in the late 1970’s, fraternity executives in small groups at the annual FEA meeting and other occasional get-togethers, individually and collectively around the country discussed the need for common approached to managing key issues of the fraternity community. Lawsuits had just started to occur in significant numbers throughout the Greek community (Sigma Nu’s first significant lawsuit filed in its history was in 1980, but not settled until 1985). The Kappa Alpha incident at the University of Texas in the 1980’s with a resulting 20 plus million settlement was the eye-opener. Insurance became difficult, if not impossible, to obtain, with less coverage for greater cost. Some organizations opted to go without. In 1984, fraternities were just beginning to develop and publicize policies addressing alcohol and hazing, although many fraternities already had constitutional provisions against hazing many generations earlier. Nevertheless, alcohol abuse had become rampant, starting when in loco parentis was discharged by institutions of higher education in the late 1960’s and throughout the 1970’s.
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<p>FRMT</a>, Ltd</p>
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*About FRMT, Ltd. *
FRMT, Ltd. was formed in September 1996 in Hamilton, Bermuda as a reinsurance company owned by 12 national college fraternities and begun its first underwriting year on October 1, 1996. By October 1, 2007 the organization had grown to 28 member fraternities and completed the domestication process and a move from Bermuda to Vermont USA. Growth in the organization is a testament to its focus upon reducing the dependence of its member fraternities upon the commercial insurance market and allowing each member and the collective group to obtain a greater control over their future insurance needs and costs.
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<p>Funny, one of the articles referenced above was written/posted in 1997. Not sure a few posted articles on a website from 11 years ago proves anything or is even current.</p>
<p>From the FIPG Risk Management Manual, 2007 version:</p>
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As Sir Isaac Newton observed in terms of physics, for every action there is an equal and opposite reaction.</p>
<p>With parties and behavior out of control, it was only a matter of time before people began seeking compensation for injuries or deaths, not to mention the response from municipal authorities, college and university administrators, neighbors and parents. Tort law in the United States was continuing to shift to the plaintiff’s side of the courtroom. Comparative negligence—the concept that a plaintiff could be negligent and still pursue recourse against a defendant—was becoming the standard.</p>
<p>Lawsuits against men’s national organizations, alumni corporations, chapters, chapter officers and individual members began to increase rapidly. By 1986, men’s national fraternities were ranked as the sixth worst risk in the insurance industry, and number seven was hazardous waste disposal companies.</p>
<p>Insurance companies responded quickly. The cost of policies offered to Greek letter organizations began to soar, while the coverage available plummeted. Many underwriters simply dropped the policies and walked away from the Greek business.</p>
<p>One of the editors of this manual recalls a meeting in the spring of 1989 with representatives of the large liability insurance company that insured his fraternity. He had been appointed CEO late in 1988 and had little grasp of the nuances of the insurance industry. The meeting had been called by representatives of the company after three lawsuits were filed in rapid succession that involved three different chapters.</p>
<p>When your editor naively suggested that an increase in the premium or the deductible might help the situation, he was informed that the representatives were not there to negotiate terms. They were there to inform a long-time client (the fraternity) that the policy would be cancelled as of the following June. “You guys are nuts”, one of the representatives told your editor as they rose to leave. “You can’t operate like this much longer”
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<p>interesteddad, I'll tell you that you're simply mistaken. Every fraternity I know of is required by their national organization to be insured. </p>
<p>"Risk management", rather than being a buzz word, is simply just that- its a system for risk mitigation (and thus reduced premiums). It involves alcohol education, multiple monitors at each party, and things like making sure food and water are available. Many national organizations offer awards for great risk management (which in turn further lower a chapter's premiums). </p>
<p>So in short, you have no idea what you're talking about.</p>
<p>Idad, I agree with so much of what you write about the perils of college drinking in general and binge drinking in particular- but again- you sure sound like someone with a very personal axe to grind. My town removed the swing-set and slide from our local playground- it was uninsurable- and so the only feasible solution was to remove the "hazard". The fact that no insurer would take the policy was no reflection on what actually went on in the playground- according to the local paper there had never been an accident of note (scrapes and tears notwithstanding) and the town had never had a claim.</p>
<p>Nonetheless- the insurance companies set their own underwriting rules, which is entirely their prerogative, and everyone else needs to decide what to do as a result. I am not aware of a catastrophic loss on a swing or a slide- however, if an actuary has determined that the cost of such a loss would be astronomical- the company has every right to decide they don't want to be in the playground business. There was so much publicity in Greenwich CT when a dad sued the town because he fell off his sled while playing with his kid in the snow-- I think the settlement was in the millions. For sledding. In a town park.</p>
<p>So I find your evidence about the dangers of frats a tad misleading- which is not to say that frats have not had their share of dangerous campus behavior. But a more balanced discussion might include the rising (and astronomical costs) of insuring many other campus activities- including riding stables, diving teams, any activity or sport with a risk of head injury, etc. Settling your typical "slip and fall" in a campus cafeteria costs thousands of times more than it did when we were in college... because we live in a litigious society and nobody says, "oh I was clumsy", they say, "gosh, this university is a rich institution which should have wiped up the orange juice so I wouldn't have slipped and by the way their insurer will pay".</p>
<p>Risk management is a huge topic at universities today- agree with you 100%. But there are all sorts of places and things and activities which the cost of liability insurance will render untenable (look at what has happened at summer camps-- the risk of hiring a pedophile will surely close some camps at the low end of the cost spectrum)- this isn't a frat issue, this is where our society is heading.</p>
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One of the editors of this manual recalls a meeting in the spring of 1989 with representatives of the large liability insurance company that insured his fraternity..... They were there to inform a long-time client (the fraternity) that the policy would be cancelled as of the following June. You guys are nuts, one of the representatives told your editor as they rose to leave. You cant operate like this much longer
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<p>Its been nearly a decade since this conversation took place, and it looks like many fraternities and sororities are still going strong, so apparently that insurance company's prediction was not very accurate.</p>
<p>I have one son at a large private where about 20% of men are in a frat and another son at a mid size Public, 15,000, where only 9% are in a frat. Is there a difference as they describe the social environment? Yes there is and the OP is wise to look into the data for each campus. This can be one factor in choosing a college but I do not consider it a critical factor unless the student has very strong feelings one way or the other.</p>
<p>No question son at the private has been more in contact with frats and it usually references a party or social event with drinking. Invites to parties to meet the guys, big "row" events before games etc. He has not joined. He is looking at a professional engineering frat though as a possibility for next year but is undecided and they rarely party. (I always thought engineering parties were boring anyway LOL) Son at the public has no clue the frats even exist and they are a very minor part of campus social life.</p>
<p>I was very much a GDI in college and was very turned off by the whole frat thing, esp the private club aspect. I try not to let that influence them and their decisions but you can see their environments have a possibility of influencing them. At the public, you would have to seek out the frats, at the private they often seek you out and can dominate the social scene.</p>
<p>Bay, it's been nearly two decades, and they're still going strong.</p>
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My town removed the swing-set and slide from our local playground- it was uninsurable- and so the only feasible solution was to remove the "hazard".
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<p>Well, there ya go. All I'm saying is that when the "swing-set" becomes uninsurable, the "swing-set" will be removed from campus.</p>
<p>In this case, the "swingset" is already uninsurable by commercial insurance companies and, instead, must be privately underwritten. It isn't going to get any easier.</p>
<p>I believe how your kid will behave (binge drinking or not) in college is more related to their upbringing(family, parents) rather than his/his college's social scene. We raise our kids to behave correctly no whether what kind of circumstance they are in. I would hope my kids wouldn't steal or cheat just because their friends do. </p>
<p>My older daughter is in a sorority at Cornell. It has been a very positive experience for her. She is still a sensible, level headed (yes, a good time girl too) person we have always known. If she didn't go to a school with Greek life, she would have joined clubs or activities with girls of similar interests as hers. I also really do not believe she would have partied less if she had gone to a school with less Greek life presence.</p>
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"Risk management", rather than being a buzz word, is simply just that- its a system for risk mitigation (and thus reduced premiums). It involves alcohol education, multiple monitors at each party, and things like making sure food and water are available.
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<p>Well, actually, if you read the risk manangement policy at the links I provided, you will see that the required risk management regarding alcohol is for member fraternities to provide ZERO alcohol at parties. No kegs. Nothing. Parties must by BYOB, limited to one six pack or must have a third-party provider with licensed bartenders. Oh, and nobody can attend a frat party without a personal invitation and listing on a prior guest list.</p>
<p>Does anyone really think that fraternities are following their own "risk management" guidelines on alcohol? The risk management policies are for the national to defend themselves in court and throw the chapter under the bus for violating policy when deaths occur. Can't blame 'em for that.</p>
<p>Here's the link to the 88 page Risk Management Manual (pdf):</p>
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Bay, it's been nearly two decades, and they're still going strong.
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<p>Oops, yes, even better!</p>
<p>fraternities are not at any more risk than colleges, and kids do drink in their dorms. They pre-game in their rooms before they go out to party at fraternities.</p>
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I believe how your kid will behave (binge drinking or not) in college is more related to their upbringing(family, parents) rather than his/his college's social scene.
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I have enough friends whose parents don't drink and who didn't drink/party in high school who just went wild when they started college. Obviously there are kids who do not, but my personal experience would suggest that you really don't know how your kid will react to college life. I also know some kids (very few, but some) who partied and did drugs a bunch in high school and sobered up in college and are working harder and turning their lives around. The freedom of college can have very positive or very negative affects on kids and how they mature and grow up.</p>
<p>Colleges have big liability concerns with drinking, too. That's why virtually all of them have taken steps to prevent the college from providing alcohol. They actually like the fraternities, because the frats provide a front-line defense. It's the frats and the frat officers who will take the first legal bullets when somebody dies. But, the colleges do demand that the frats carry liability insurance.</p>
<p>Wait, which is it? Are they on their way out? Or are they supported by the university. As a stupid, booze sodden frat boy, I become easily confused- please explain!?</p>
<p>I don’t think the college social fraternity will become extinct anytime soon. As long as people want to have a good time and feel that a private association is the best way of obtaining that good time, they’ll exist.</p>