@TJatCAMPUSPEAK (aka T.J. Sullivan) posted the following to Twitter on Tuesday night – “The biggest beneficiaries of fra/sor life in the last three decades have been the insurance companies. Discuss.”
I don’t know about this statement, but I do know that fraternity and sorority members pay an awful lot of money towards insurance, and insurance companies do not sell policies to lose money.
Fraternity/sorority insurance is a big business for someone. What helps these companies make money is the fact that all of these policies come with stipulations on what behaviors are covered. In most cases, the behavior that leads to lawsuits is outside of the coverage of the insurance policy, thus disqualifying the individuals from coverage. In those cases, the insurance is only there to protect the National organization. The insurance company will then go after the individuals who acted outside of their training and policies to recover any losses.
I wonder how many fraternity guys really understand that they are paying a shitload of money for their National organization to protect themselves against the stupidity of those same members? Have any of these individuals personally benefited from those insurance payments (likely in the $500 to $1,000 range over their time as an active member)?
I don’t know if the insurance companies have been the biggest beneficiaries over the past thirty years, but the people paying the insurance have likely benefited the least.
By the way, I wonder how much more the active members of Sigma Alpha Epsilon will be paying for insurance in the coming year?