The landscape of telecommunications and security systems in the UK is undergoing a pivotal transformation, with significant implications for insurance brokers and their clientele.
The planned closure of BT Redcare's alarm signalling services and shutdown of the Public Switched Telephone Network (PSTN) by 2025 underscores the urgency for businesses to act.
BT Redcare alarm systems must be replaced by 1st August 2025 and BT has said that no new products will be sold after February 2024. The PSTN shutdown and transition will be complete by the end of 2025.
Approximately 100,000 customers who depend on BT Redcare for alarm signalling are facing the obsolescence of their current systems. With the simultaneous PSTN shutdown, systems reliant on this technology will be incompatible with the digital infrastructure which is due to follow. This transition presents a dual challenge for insurance brokers: ensuring client awareness of these imminent changes and assisting in the transition to suitable digital alternatives.
The end of these services not only jeopardises the functionality of existing security systems but also places a strain on the availability of installation services. With the deadline drawing near, the industry anticipates a surge in demand for system replacements, which could lead to potential installation delays due to limited capacity among providers.
The shift towards digital networking promises enhanced reliability and versatility in telecommunications. However, it requires prompt action. Insurance brokers are positioned as critical advisors in this transition, encouraging their clients to consult with alarm companies and insurers to ensure compliance with insurance standards and the continuity of protection.
Early planning is key
David Reynolds, Head of Risk Engineering & Surveys at RiskSTOP, emphasises the importance of proactive engagement: "Businesses and their insurance brokers must start talking about replacing alarm signalling systems now. Any sort of delay may not only compromise security but could also complicate insurance coverage. Prompt planning and action are essential for a smooth transition."
This impending change highlights the need for thorough planning and cooperation among businesses, insurance brokers, and service providers. By responding quickly, the potential challenges posed by the PSTN and BT Redcare discontinuations can be made into opportunities for improved security and connectivity.
Moreover, David Reynolds advises on the careful selection of replacement signalling equipment: "Businesses must check the technical specifications of new equipment thoroughly. Securing a replacement that mirrors the functionality of the BT Redcare system is critical to maintaining security system integrity and compliance with insurance policies."
AXA Insurance recommends specific alarm signalling products, such as the CSL Dualcom Gradeshift Pro DP3 or any dual-path alarm transmission system that meets the DP3 performance level and is certified to BSEN50136-1:2012. These recommendations serve as appropriate substitutes that fulfil AXA's requirements, ensuring businesses can uphold their security system's integrity throughout the transition.
For businesses seeking further information to help navigate these upcoming changes with minimal disruption, RiskSTOP offers expert risk management and improvement services. With our guidance, businesses can confidently prepare for the digital switchover, preserving the security and integrity of their operations. Get in touch today by calling 01305 215500 or emailing enquiries@riskstop.co.uk.