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Loss Control with a Badge

The Reincarnation of Certificated Systems Concept

1900s Insurance Business Model


Front End Back End Certificated Alarm Systems Underwriting Claims

Insurance Industry embraced security. Loss control was important to profits. Certificated Systems popular through 1970s because they reduced loss.

Sales

Loss Control

Investigation

UL Certificates defined a well installed & monitored traditional burglar alarm


UL Certificated Alarm Systems Certification of alarm service provides a confidence connection between users, owners, service providers and authorities having jurisdiction. Standards can connect expectations, but a systematic Certification program provides assurance. For more than 90 years, UL has worked with the alarm industry, user groups and AHJs to invent today's model for alarm service Certification. UL Certification of your alarm services delivers the highest level of confidence available in today's market.

Underwriters offered DISCOUNTS to policy holders and even MANDATED alarms before underwriting policies

1970s Insurance Business Model


Front End Back End Certificated Alarm Systems Underwriting Claims

Certificated systems declined Why? 1970s - Insurance became Investment Income business collecting premiums. Loss control increasingly unimportant. Alarm Discounts now Marketing Gimmick

Sales

Loss Control

Investigation

2010 Insurance Business Model


Front End Back End Underwriting Sales
Loss Loss Control Control

Claims

Investigation

2008 Market Crash destroyed model. Profitability now means Loss Control. Alarm discounts decline/eliminated as outdated marketing device.

Discounts for Traditional Systems: No Longer Deliver Value, Too Costly

Discounts for Traditional Systems: No Longer Deliver Value, Too Costly

Arrests = Value Affordable Discounts should reflect:


Reduced Risk Improved Loss Control

Insurance connection to Law Enforcement Trains 12,000 police officers/year Trains 20,000 insurance people/year Funded by 1,100 property insurers NICB does NOT endorse a brand but does support Priority Response policy.

Video Webcast on the Concept

Play video from Link

www.ijmag.com/LossControl

Shared Problem since 2010


Declining law enforcement resources means decreasing importance of property crime. Security View: Non-Response Insurance View: Non-Investigation Same problem two perspectives

Property Crime Stakeholders


Industry - CSAA - ESA - SIA
Industry

Law Enforcement - Police (municipal) - Sheriffs (county) - PSAP


Law Enforcement

Insurers - Large Commercial - Small Commercial - Residential


Insurers

Stronger

Partnership

Minimize Loss

Non-Response to Traditional Alarms


Around the country, more and more communities have adopted policies and ordinances that limit response for traditional burglar alarms and prioritize verification

Seattle, WA Modesta, CA Detroit, MI

Example: Detroit

"Our main goal is to respond to crimeWe've been looking at this for a long time and from what we've observed this is definitely the way to go. Verified response will take us to the next level."

Example: San Jose


The San Jos Police Department will no longer respond to alarms solely on the request of alarm monitoring companies In keeping with emerging standards successfully implemented by law enforcement agencies throughout the country, the Department will adopt a Verified Response Protocol. This change will occur on January 1, 2012.

San Jose - Traditional Alarms


In 2010, the San Jose Police Department:

Responded to 12,450 traditional alarms


Filed 113 police reports Made only 2 arrests

Insurers Perspective Los Cruces - Traditional Alarms


In 2011, the Los Cruces Police Department:

Responded to 12,970 traditional alarms


50 actual crimes Made only 5 arrests, 2 for burglaries

Insurers Perspective Los Cruces - Traditional Alarms


In 2011, the Los Cruces Police Department:

Responded to 12,970 traditional alarms


50 actual crimes Made only 5 arrests, 2 for burglaries

Jan 12, 2012 - The city of Las Cruces, N.M., may amend its alarm ordinance so a Verified Response System could be required for the installation of burglar alarm systems in any new residential or commercial construction due to a high number of false calls.

Stagnant standards stalled innovation: no wireless, no video, no cell phone


Certificated Burglar Alarms Certification of alarm Whenconnectionservice provides aowners, Law Enforcement confidence between users, service givesproviders and authorities having to Priority Response jurisdiction. Standards can connect expectations, but a systematic Certification Verified Intrusionmore than 90 Alarms program provides assurance. For years, UL has worked with the alarm industry, this is not true. user groups and AHJs to invent today's model for alarm service Certification. UL Certification of your alarm services delivers the highest ` level of confidence available in today's market.

Legacy Standards no longer provide highest level of confidence Purpose of alarm is to reduce claims and losses - arrests

What alarm deliver loss control? Systems that make Arrests!


Traditional Alarms 1-2 arrests for every 10,000 alarms The arrest rate without alarm is between 5-7% Video Alarms 19% in Los Angeles 70% in Detroit 25% in Texas 32% arrests on 175 dispatches from 40,163 alarms (Indoor/Outdoor)

Resurrecting the Certificated Concept Case Studies

1. 2.

Video Intrusion Alarms Priority Response

Arrests reduce claims/losses

What is Priority Response?


Squad Car Alarm Monitoring Station

Owner Priority Response 911 Center PSAP Dispatcher


Queue Llll 1. Event A Lll 2. Event B 3. Event C

Two phone calls to Owner to confirm alarm

Event

911 PSAP CAD

911 Center PSAP Call Taker

Video Alarms at top of the List

Sheriffs support Loss Control

What Are Video Intrusion Alarms?


1.Alarm signal with video clip is transmitted to a central station.

2. Operator confirms if an intruder is present and calls owner. 3. Operator dispatches confirmed alarm for priority response.

www.priorityresponse.info

Video Intrusion Alarms are NOT Surveillance Systems


Video Intrusion Alarms Detect and Notify for immediate alarm response and arrests. Surveillance systems typically unmonitored. Surveillance makes recordings that are reviewed after the incident to document a loss. Surveillance DOESNT STOP A LOSS solves other problems but not arrests.

MotionViewer
2 Indoor Events: 1 Critical Difference

Case Study: Arrests!


Central Station operator views what caused the alarm Video clip can be sent to 911 center and/or squad car

40 arrests in 4 months Prevented hundreds of thousands of dollars in losses and claims.

International Assn. of Chiefs of Police Police Chief Magazine Case Study

International Assn. of Chiefs of Police Police Chief Magazine Case Study

Detroit 2010-2011 School Year:


101 burglaries 70 closed with arrests 123 individuals apprehended

Detroit Public Schools IACP Case Study


Using affordable video alarms to protect high-risk buildings Executive Deputy Chief Schwartz: We prevented millions of dollars of damage to property from copper theft and vandalism

Detroit Public Schools IACP Case Study


2010 Police K-9 Officer of the Year John Greene and Nitro Over 150 arrests since program launched in 2009

Police Chief Magazine Case Study


Without wires, installation was inexpensive... Four technicians from a local security company installed the alarms over six days in 30 school buildings around the cityan impossible task with traditional, wired alarm systems. The results have exceeded all expectations since the program began. Working within an austerity budget, the DPS PD has proven the value of video intrusion alarms and is updating its new dispatch center and policies to build upon this success.

Law Enforcement Prioritizes Video Alarms

97%

LA Police Dept. Policy

the LAPD implemented a revised Burglar Alarm Dispatch Policy to make optimum use of limited public safety resources.

Los Angeles Sheriffs Dept.


2nd largest policing agency in the USA

Case Study Boston


Even those cities that do respond to traditional alarms prioritize video intrusion alarms. Traditional alarms receive lower priority from officers.

Case Study Boston Traditional Alarms are Priority 3 Video Alarms are Priority 1 More arrests and lower claims

2010 Insurance Business Model


Front End Back End Underwriting Sales
Loss Loss Control Control

Claims

Investigation

2008 Market Crash destroyed model. Profitability now means Loss Control. Video intrusion alarms deliver arrests and reduce losses: re-evaluate the DISCOUNT

Insurers are giving Discounts Hypercompetitive Market


Up to a 30% discount on Property/Casualty policies Waiving the precious metals exclusion that excluded copper theft claims Waiving or reducing deductibles

Resurrecting the Certificated Concept


New Standards are needed that embrace innovation and define systems that deliver arrests and reduce loss.

1.
2. 3.

Video Intrusion Alarms and Priority Response increase arrests. Arrests reduce claims/losses. The Risk Assessments will be collected and form the basis to create this new standard.

Insurance Agent/Customer/Security
Joint Meeting to Discuss: How Priority Response reduces claims using Video Intrusion Alarms based upon Video Intrusion Alarm to deliver priority response and reduce losses. Re-evaluate the Discount

Customer/ Prospect

Security Salesperson

Insurance Agent

Risk Assessment
Premium Discounts Reducing Deductibles Based upon: reducing risk improving police response mitigating historical loss factors

Customer/ Prospect

Security Salesperson

Insurance Agent