Fraternities were discussing risk management policy initiatives, but the majority were not zeroing in on alcohol abuse until later when lawsuits became sufficiently frequent to get everyone’s attention. In addition, the image of the typical fraternity was still very much an “animal house” perception ever since the 1970’s, a troublesome concern for most executives.

Therefore, at the Vail, Colorado FEA annual meeting in 1987, under the presidency of Phil Josephson of Alpha Gamma Rho and Durward Owen of Pi Kappa Phi as program chairman, the Fraternity Executives Association Board introduced the concept of having a uniform policy that would address the key risk management issues that had engulfed the fraternity community from aberrant behavior of undergraduate students. Also, such an initiative would, hopefully, raise the level of consciousness of the importance for all fraternities to assume part of the traditional college responsibility, which had long since been discharged by sheltering institutions of addressing undergraduate aberrant behavior, especially hazing. The minutes of the Vail, Colorado meeting will reveal that such a concept for cooperative action was introduced, debated and approved with abstentions by some and rejection by others.

In 1987, the U.S. government passed certain laws to relieve the pressure on all organizations for less costly and more stable general liability insurance. The creation of an insurance purchasing group was a possibility envisioned by then FEA President, Chuck White of Sigma Phi Epsilon. He led the fight for FEA to consider this approach to solving a common problem – fewer insurance companies will to insure fraternities and at exorbitant costs and conditions.

In December of that year, a committee was appointed (by President Chuck White of Sigma Phi Epsilon) consisting of Durward Owen, as the chairman, Dick Barnes of Kappa Alpha Order, along with Mo Littlefield of Sigma Nu, met in the Hotel Roanoke in Roanoke, Virginia on December 28, 1987 to formulate plans for the development of a Risk Reduction/Risk Management Policy, including an implementation process along with enforcement and verification procedures. Subsequently, a staff member of Sigma Nu, Mark Usry, who was an attorney, was assigned to work directly with Dick Barnes to hammer out a final policy to be submitted to the FEA for consideration at their next annual summer meeting. Policies on paper from many fraternities were reviewed, and, finally, a universal policy became the result.

This was the first time in recorded history that such a comprehensive, dynamic initiative designed to get all fraternities to conform to a universal policy and to regulate their student behavior had ever been successfully undertaken.

Ultimately, the Fraternity Executives Association board formed the Fraternity Insurance Purchasing Group as a separate adjunct to the FEA, but with FEA becoming the sole stockholder of this newly created corporation. FIPG had been incorporated by Chuck White as the incorporating president of record in the state of Kentucky on December 3, 1987, using the offices and expertise of Harris and Harris Insurance Company. Durward Owen was the first operating president of FIPG. The initiative was given much needed form and structure during its first two years. Considerable financial support of broker Ron Krebs (Pi Kappa Phi) of St. Louis, Missouri was instrumental in early success. The minutes of the FEA board each year starting with the Vail FEA summer meeting would tell its own story of FIPG, as would the minutes of the FIPG itself.

Hazing had to go, but it was enhanced by excessive alcohol consumption. It was perceived that no one fraternity, or even a few, could compete successfully (particularly in rush) unless a “level playing field” was created with all fraternities participating equally. While that early pioneer group of a relative few fraternities were looked upon with jaundiced eye by leaders of some fraternities, the crowning result became an active FIPG. The fact that other fraternities who were (and are) not members of FIPG were quick to plagiarize the same policy, speaks for itself. Today, we have pretty much a “level playing field” relative to the FIPG policy all across the Greek community nationwide, with many schools adopting similar policies. Enforcement turned out to be another matter, and still is.

The ultimate goal of FIPG was to create a level playing field, in regards to risk management issues, on all campuses with all fraternities belonging and adopting/enforcing the risk management policies and procedures of FIPG. With this it was anticipated that excessive alcohol (and other drugs) use would come under control and risk (hazing, accident, fights, etc.) would be significantly reduced. Wrong!

In hand with a better risk environment this would enable FIPG participants to join together to form a risk retention group and in fact have its own captive insurance company. A major effort was commenced using Gallaghers of Chicago (agent driven out of St. Louis, Missouri) to create the FIRMA insurance company. This effort would require significant capital funding and a majority of FIPG fraternities to participate.

With too many FEA members at this early date not joining FIPG, and faced with too few FIPG members will g to commit to FIRMA, this collective insurance effort failed in 1990-91.

However, with the added membership of ten women’s groups, commencing in the early 1990’s, FIPG has grown to 44 participants. The letters “FIPG” are perhaps the most recognized letters (especially among Greeks) on the current campuses. This added strength may well lead FIPG to a higher level of effectiveness.

It should be noted that in July, 1995, the organization officially changed its name to FIPG, Inc., there being no insurance function, and instead it became purely a risk management association. The FEA in July, 1997, sold its single share of stock back to FIPG, Inc., and therefore relinquished its ownership.

Prepared by Durward Owen, November, 1997.