The one thing you failed to realize is that insurance companies are still posting record earnings, and that they only insure people if they are sure they will make a profit. This is the point of business. It should be self evident that if a well run non profit insurance company was started on behalf of the GLOs, people would pay less money in premiums.

What is sad is that while financial risk has gone up, the behaviors that are actually risky have plummetted.

Funny you mention this battle, as tort reform was a major republican issue, especially on the libertarian branch of the party, going into the last election. Tort reform, combined with the federal oversight of monopolistic behavior by insurance companies, would help GLOs immensely.

It is sad that some just accept the reality of rising rates as fact without looking into why or figuring out ways to solve the problem.

For states who dont require insurance, how about new hampshire, which does not require you to carry liability insurance for your automobile. You are not required by law to pay to reduce your financial risk. I personally think being legally required to buy a product priced by a company not covered by the sherman antitrust act is the definition of extortion.

Any company can whine about rising costs as an excuse for charging higher prices. The real problem is that people are willing to pay these exorbitant prices, and more importantly, at least in the case of my GLO, are required to pay whatever amount the NHQ tells you to pay, and in most cases if you don't pay, you go to a collection agency. Furthermore, you can only cancel this insurance bill when you graduate, my GLO doesnt recognize INACTIVE members. They still get billed for the insurance unless they have dropped out of school.

It's pretty easy to see whats going on here. Rising costs are never an excuse for rising prices. Prices are determined by supply and demand and what they are willing to pay. Since they are required to buy insurance by law, people are willing to pay almost anything in order to keep 120 or more years older GLO's alive, to keep doctors in hospitals, and to be able to drive their cars. It's just a matter of continually putting on the squeeze slow enough that no one notices til its too late and paying off lobbyists while simultaneously lying to the public about rising costs instead of the fact that they are simply trying to maximize value for their shareholders.

I've never had a car accident and have never visited the doctor for the 6 years that I have been on my own with these types of insurance but my rates go up every year.

The reason is what my fellow Delt brother contends. We are all inter-related. That's the reason an insurance company sells policies. We drive our cars and we read the news about the big wreck on the interstate or whatnot. For crying out loud, my girlfriend was hit twice in one week. It says that we are negligent drivers.

We have people who intentionally smoke. While they are paying somewhat higher rates than I, I am also supplementing for their "addiction."

The same goes for greek organizations, social clubs (masons, Moose, Elk). Some chapters are clean, some are bad. But the point is that we are all inter-related.

Insurance companies, or anyone for that matter, would not provide coverage to a single person by themselves if they were not responsible in everything they do. If an insurance company were to provide coverage to just me, then they would go under, because the time I am sued for malpractice for $200,000 and I have only put $15,000 in the pot, the insurance company goes under.

The more people who are under a policy the cheaper it is for all of us. Yes, I know that sounds socialistic, but it kind of is. But when you take that into account, you let in some low lifes who make poor decisions and we have to pay for it a little.

But there will come a time where something bad happens to your chapter and you will be glad that there is that insurance to protect you. Whether you are a chapter member or an alumnus advisor, you are liable if something bad happens.

LATau, not to be critical, but you had said something earlier about holding chapters as individual entities and that is something happened, the local chapter could file for bankruptcy, the national organization would get off scot-free. How would you feel if your best friend was killed while in the fraternity house and all his family got was a $500,000 check from the bankruptcy of the house or from the home-owners insurance? (What if the chapter didn't have a house? Chapter funds are like $30,000. Would you be happy that your best friend lost his life for $30,000 and now no other men would be able to go through the proper growth of living in a real fraternity).

I think you'll find that the company that brokers the "self insured" piece I've talked of above is simply a managment company -- not someone like Prudential or Lloyds.

The pool of money belongs to the consortium of fraternities. It does not come from profits on policies -- if there are any.

It is not your typical insurance company that is set up for profits. It is set up for self protection.

From the FIPG website...
 

I know that I have posted this before in another thread but...

Q: Does FIPG sell insurance?

A: No! Despite the popular misconception, FIPG does not now nor has it ever sold or provided insurance coverage. FIPG was created in the 1990s to investigate the possibility of providing group insurance coverage for a number of fraternities. However, that effort was short-lived. FIPG has nothing to do with fraternity/sorority insurance or insurance coverage.

Q: What does FIPG do?

A: Provide risk management guidelines and educational resources to help member fraternities and sororities be more effective in their risk management policies and educational efforts.


The fact that an organization is a member of FIPG may help them be more insurable because various insurance companies will like the policies that the organization has adopted because of their membership. Aside from that FIPG has nothing to do with your insurance coverage.

More information about FIPG can be found at:
FIGP.ORG

Car insurance can't be compared. Those rates are based on everyone in the entire country.

As far as your medical insurance, unless you have individual insurance, it depends on the claims of your group overall. If your insurance has gone up above and beyond the market in general and you didn't have any large claims in your group, you're getting screwed - that's what I'm talking about. FIPG shouldn't be including the giant lawsuits of XYZ with ABC.

But that's the point. We, as greeks, are all inter-related under these terms. If we were all on the same page and all of the organizations were clear of liability, then perhaps we would see a stay on increases. We are in the group together.

My Brother Delt is correct. There is a direct corelation. Car insurance rates are set by the number and amount of claims for a group -- notably all drivers. Chapter liability insurance rates are set by a group, also -- notably all chapters.

In fact, there was some talk about giving breaks to chapters with no claims, high GPS's etc. Just like good driver and good student discounts. I don't know if that ever happened.

I work in the insurance industry...
 

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