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SIAC Responds to Insurance Article

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Modern Burglar Alarms Remain One of the Best Defenses Against Losses

There is no question today that alarm intrusion systems are often one of the first lines of defense against insured losses from crime. According to the Electronic Security Association, which represents the majority of companies in the alarm industry, the breakdown for intrusion alarms shows them protecting virtually every type of insured business enterprise:

  • residential 40%
  • commercial (office buildings, retail, banks, etc.) 30%
  • institutional (schools, hospitals, churches, etc.) 11%
  • industrial (factories, warehouses, utilities, etc.) 12%
  • government (local, state, federal Facilities) 7%

In a national survey of police chiefs, 90 percent acknowledged that alarms both deter burglary attempts and increase the probability of a burglar being apprehended. Of the nation’s approximately 18,000 public safety agencies, only a handful require confirmation from a business owner, witnesses or security guard before police are dispatched to an alarm site.

One of the most in-depth and comprehensive studies of the effectiveness of alarm systems in preventing losses was conducted by the Rutgers University School of Criminal Justice (SCJ). The study found that in Newark, New Jersey residential burglar alarm systems decreased crime. While other studies have concluded that most burglars avoid alarm systems, this is the first study to focus on alarm systems while scientifically ruling out other factors that could have impacted the crime rate.

Researchers concentrated on analyzing crime data provided by the Newark Police Department. "Data showed that a steady decrease in burglaries in Newark between 2001 and 2005 coincided with an increase in the number of registered home burglar alarms," said study author Dr. Seungmug (a.k.a. Zech) Lee. "The study credits the alarms with the decrease in burglaries and the city's overall crime rate."

In short, the study found that an installed burglar alarm makes a dwelling less attractive to the would-be and active intruders, and protects the home without displacing burglaries to nearby homes.

The study also concluded that the deterrent effect of alarms is felt in the community at large. "Neighborhoods in which burglar alarms were densely installed have fewer incidents of residential burglaries than in neighborhoods with fewer burglar alarms," the study noted.

The alarm industry has aggressively addressed the issue of false alarms because of concerns that they were putting a strain on police resources. In 2003, industry leaders created the Security Industry Alarm Coalition (SIAC) which is comprised of four major North American security associations – Canadian Security Association (CANASA), Security Industry Association (SIA), Central Station Alarm Association (CSAA) and the Electronic Security Association (ESA) – representing one voice for the alarm industry on alarm management issues. SIAC's primary charter is to significantly reduce calls for service while strengthening the lines of communication with law enforcement professionals and end users.

“Eighty-five percent of the nation’s alarm systems generate no calls to the police in any given year,” said Stan Martin, Executive Director of the Security Industry Alarm Coalition. “People who say that 98 percent of reported burglar alarms are false are trying to justify ending police response to alarms without human verification of a crime (verified response). These people have failed to perform their due diligence on public safety and industry best practices.”

Working in a partnership with law enforcement, SIAC has helped communities significantly reduce the number of alarm calls made to police by promoting industry and law enforcements best practices including: 

  • The model ordinance requires registration of all alarm systems.
  • Two phone calls by alarm companies to alarm owners prior to calling police.
  • Technology designed into systems to avoid accidental triggering.
  • Fines for alarm owners who create unnecessary dispatches.
  • Suspending response to the chronic abusers

According to a study just released by the Urban Institute, these steps allow communities to maintain police response while conserving law enforcement resources. The study notes that Montgomery County, Maryland was able to save $6 million in costs and reduce alarm calls by 60 percent. The reduction in alarm calls from 44,000 to 16,000 came despite a significant increase in the number of alarm systems. 

According to Glen Mowrey, national enforcement liaison, Security Industry Alarm Coalition, Marietta, Georgia, reduced alarm calls 65 percent in two years with annual revenues of $223,050 in 2008 and $94,800 in 2009; Johnson City, Tennessee, reduced alarm calls 50.1 percent over a four -year period; and Union City, Tennessee, showed a reduction of 55.4 percent over a four-year period. During a 14-year period, the police department in Charlotte-Mecklenburg, North Carolina, brought down its percentage of alarm calls, out of total calls for service, from 20.1 percent to 2.4 percent annually, netting 13.5 police officers and an annual revenue in 2009 of $334,470, which includes a reimbursement for 2.5 full-time employees from an outsource company contracted to administer the billing and tracking component.

As new technology emerges SIAC is at the forefront of helping develop standards and policies with its partners in the law enforcement community. “Alarm systems and technology are constantly changing and improving,” said Stan Martin, SIAC Executive Director. “Our major and long established trade and professional associations that support SIAC are constantly working to make sure there are standards in place to properly apply this technology.”

“The working relationship between public safety agencies and the alarm industry has never been stronger,” said Glen Mowrey, SIAC law enforcement liaison and former Deputy Chief of Police in Charlotte/Mecklenburg, North Carolina. “Eleven states have created state-wide committees to work with the industry on alarm issues and they all have adopted some form of SIAC’s model alarm ordinance.”

SIAC also serves as the industry’s voice working with national law enforcement organizations such as the International Association of Chiefs of Police and the National Sheriffs Association.

Through SIAC, the alarm industry is always available as a resource to the insurance industry for questions, concerns or more information on how the alarm industry can continue to protect the insured from unnecessary losses. 

 


05/07/2013

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