Changes to Security System Standards

Issue

Telstra has announced that its widely used “Securitel” transmission network for security alarm monitoring will be withdrawn from service from 31 December 2009.  This is the result of changes in technology and the release of an updated Australian Standard for alarm transmission systems – AS/NZS2201.5.2008.   The suite of standards in AS/NZS 2201 covers a range of areas including design, installation, monitoring centres, detection devices, installation and other key components. AS/NZS 2201.5 includes a classification system (Class 1 to 5) and introduces certification to ensure compliance with the Standard and a certificate stating the transmission systems classification(s)

What does this mean for the Insurance Industry?

The recent review of Australian Standards AS/NZS 2201.5 outlines a number of performance benchmarks in relation to alarm transmission systems to ensure compliance requirements are satisfied.  As part of these measures end-user customers, security contractors, monitoring centres and insurance organisations should be aware of the changes that could impact on their respective businesses. Underwriters and risk engineers will need to become conversant with all sections of the new standard and transmission classifications (Class 1-5) to ensure their client’s security is commensurate with the risk profile. Intermediaries and Clients should be aware that any downgrading in the alarm transmission network could breach insurance policy conditions. Further, any Liability insurance covers provided to suppliers of security services, product manufacturers and the like could also be at risk.

What does this mean for the Security Industry?

It is highly desirable security alarm providers should offer products that are fully accredited and certified to the meet the new standard for each relevant class. Professional Indemnity and Liability covers could be at risk if services or products do not meet the requirements of the current Australian Standards.

Importantly, customers should consult their security advisers or insurance providers to discuss their security solutions.

What does this mean for Business Owners?

Business operators should urgently check their current security arrangements and if necessary implement changes to security alarm monitoring to ensure compliance. Many insurers offer guidance on security compliance issues, business owners with questions about how this change may impact upon their current policies should contact their insurer or security advisors.

Further Information

For further information, contact Mr Karl Sullivan, General Manager Policy, Risk & Disaster Planning Directorate on (02) 9253 5155 and email ksullivan@insurancecouncil.com.au