Acacia Alpha Epsilon Pi Alpha Gamma Rho Alpha Kappa Lambda Alpha Sigma Phi Alpha Tau Omega Chi Phi Delta Chi Delta Tau Delta Delta Upsilon FarmHouse Kappa Alpha Order Kappa Delta Rho Phi Kappa Psi Phi Kappa Tau Phi Kappa Theta Pi Kappa Phi Pi Lambda Phi Psi Upsilon Theta Xi Zeta Beta Tau Zeta Psi Acacia Alpha Epsilon Pi Alpha Gamma Rho Alpha Kappa Lambda Alpha Sigma Phi Alpha Tau Omega Chi Phi Delta Chi Delta Tau Delta Delta Upsilon FarmHouse Kappa Alpha Order Kappa Delta Rho Phi Kappa Psi Phi Kappa Tau Phi KappaFRMT Theta Pi Kappa Phi Pi Lambda News Phi Psi Upsilon Theta Xi Zeta Beta Tau Zeta Psi The FRMT Risk Management Newsletter, Prepared by Hobbs Group/Kirklin & Co., LLC. Volume 12 Fall 2003 Alcohol Prevention: Leveraging the Social Networks at Your Fingertips By Brandon Busteed - Founder and CEO, Outside The Classroom, Inc. and Population-Level Prevention™ Duane Wimer - Regional Sales Manager, Outside The Classroom has gathered an Outside The Classroom, Inc enormous quantity of data through its ollege students are an interesting group of people. Despite web-based alcohol prevention program, claiming to be in the process of “finding themselves” or AlcoholEdu. The data has brought Cfiguring out what they “want to be,” they still act as one forward interesting facts regarding the community, or social network. And, although they are individuals best means for preventing high-risk with their own passions and pursuits, as this community, they make drinking. Most impressive has been how predictable decisions. institutions - both Greek-letter organizations and colleges - have been One of those decisions involves drinking, and based on many years able to leverage the power that social of research on college drinking, it is a very predictable decision. networks have over their members. The majority of students choose to drink alcohol. Some do so very infrequently and many do so on a regular but moderated basis, and Population-Level Prevention is defined as exposing an entire yet there are equally large percentages of students at both extreme population to a primary prevention program - that is, before any ends of the spectrum – with about 20% engaging in frequent high- problems have been identified. Why does it work? When all risk drinking and about 20% abstaining entirely. members of a social network - like a fraternity or sorority - are exposed to a similar experience, they develop a common band. In The Untreated Natural Condition the case of alcohol prevention, these members receive a common Without education at an early stage in students’ college careers, language that facilitates dialogue about cultural values and changes. research shows a dramatic increase in negative drinking behaviors. Most importantly, the group is large enough to create a critical mass A study of 15,610 first-semester students who completed a survey of individuals leading to a “tipping point” toward change. on alcohol-related attitudes and behaviors “Alcohol Prevention...” continued on page 2 between late August and mid-December 2002 showed that without a solid alcohol prevention program: Pre-Partying The proportion of abstainers Heavy Drinkers drops by more than 50 percent Abstainers The proportion of high-risk drinkers increases by more than 100 percent The proportion of students who participate in pre-partying – drinking before going out – increases from 50 percent to 70 percent The prevalence of risk- reducing behaviors remains flat This “untreated natural condition” can lead to a host of alcohol-related problems – everything from injuries and assaults to liability The Untreated Condition - The above graph illustrates the change during the claims and poor academic performance. first 50 weeks of college in the drinking behaviors of first year students. PAGE 1 “Alcohol Prevention...” continued from page 1 Reduce Your Organization’s Risk Institutions implementing a population-level prevention program have seen unprecedented results. In fact, one study comparing pre- By Providing Safe Transportation and post-data of eight schools that required AlcoholEdu for all first By Richard Jungman, Manager – year students found: Claims, Client Education & Risk Management Fraternities being sued due to injuries sustained in an auto accident The proportion of abstainers were almost unheard of in the past. Today, automobile accidents increased by 10 percent are the second highest cause of fraternity tragedies. In terms of The proportion of high-risk claim dollars paid, it is just slightly behind incidents involving falls drinkers decreased by 8 percent from heights. It is not surprising alcohol is a reoccurring attribute in a majority of fraternity automobile claims. Even when undergraduate members try to do the right thing, bad things can The proportion of students who happen and expose individual members, alumni, the local chapter drank at least 10 drinks on one day within the two week and the national fraternity to potential liability resulting in costly period leading up to the survey decreased 18 percent litigation. The average number of drinks per week dropped from A local chapter of a national fraternity in Oregon held an off-premise 9.9 to 8.6 social event. In an effort to provide a safe and fun environment, the chapter rented a 15 passenger van to transport members and guests The data goes one step further, suggesting that the closer a social to and from the location. During one of the return trips, the sober network is, the better results it will see from a population- member who was driving the van lost control and struck a telephone level prevention program. For instance, pole. The result was a passenger fatally injured and one seriously while an entire first-year class will show injured. Litigation soon followed and, ultimately, a substantial results like those cited above, results tend settlement was paid out on the claim. to be even better for a Greek organization whose membership is already close-knit. What went wrong? It’s as simple as taking advantage of the social The driver of the vehicle was unfamiliar with the van. Think network at your finger tips. about the times you jumped into a friend or family member’s vehicle. You search for the light switch, the air conditioning A Call for Leadership controls or how to dim the lights. No one can control the drinking decisions of any individual. The driver was not a professional driver; while he might have However, the data suggests that the right kind of education within a been sober, his passengers were not. Dealing with the distraction tight social network can potentially lead the members of that network of passengers can be difficult, even for professional drivers. to better personal choices. The General Liability Hired and Nonowned Auto Coverage afforded under the national fraternity’s liability policy was It is easy to think of high-risk drinking as a natural by-product of immediately put into play due to the rental company and driver’s the college experience but it doesn’t have to be. I challenge each of insurance having insufficient limits to pay the entire amount of you, as the leaders of Greek organizations, to test the power of damages. your social network by educating all your members about alcohol’s “Reducing Your...” continued on page 4 effects on the body and mind. Call upon your members to respect the founding values and principles that define your organization. And in doing so, protect the people who make up your organization, FRMT, Ltd. leading them to make the critical decisions that will avoid the A Bermuda Reinsurance Company in parternership with the untreated natural condition. Royal Globe insurance organization to compliment the risk management programs of each member fraternity, such as the PROPERTY INSURANCE publishing of this risk management newsletter and providing the Hobbs Group/Kirklin & Co., LLC. sponsors a following member fraternities with a comprehensive liability insurance program: property insurance program that in 99% of all cases Kappa Alpha Order provides FRMT member fraternities with broader Acacia Alpha Epsilon Pi Kappa Delta Rho insurance coverage at a lower premium. Alpha Gamma Rho Phi Kappa Psi Need more information? Alpha Kappa Lambda Phi Kappa Tau Contact Suzanne Haas Alpha Sigma Phi Phi Kappa Theta Telephone: 800-736-4327, ext. (1)203 Alpha Tau Omega Pi Kappa Phi Fax: 800-328-0522 Chi Phi Pi Lambda Phi or e-mail [email protected] Delta Chi Psi Upsilon Hobbs Group/Kirklin & Co., LLC. Delta Tau Delta Theta Xi Visit our website at www.kirklin.com Delta Upsilon Zeta Beta Tau FarmHouse Zeta Psi PAGE2 2 The State of the Fraternal Insurance Market: by Richard Jungman , Manager – Claims, ClientEducation & Risk Management Dealing With The Insurance Crisis Hobbs Group/Kirklin & Co., LLC. The current state of the insurance market is insurance market are those who elect not to competitive quotes or room for negotiating categorized as a hard market. This type of purchase insurance. The current condition with underwriters. market occurs when underwriting capacity within the fraternal insurance market place e. More and more college shrinks while the demand for insurance is being driven by two factors: campuses are increasing the remains constant or increases. It is simple insurance limit requirements Economics 101, as supply decreases and 1.Overall insurance industry poor for fraternities and sororities demand remains constant or unchanged, the performance: from $1,000,000 to price of the good or service increases. a. September 11, 2001, is still having a $5,000,000. This is likely Supply is often referred to as underwriting lingering effect. Insurers are increasing only going to capacity in the insurance industry. It is premiums to play catch up with the losses become more defined as the amount of surplus capital in paid. common as jury the insurance market place.