Berkeley Alexander is alerting intermediaries to engage with clients using BT Redcare Alarm Signalling Systems, following BT's announcement of a full withdrawal of these services by August 2025.
The discontinuation primarily affects commercial entities and mid-to-high net worth individuals reliant on these systems for fire and security measures.
BT has ceased the sale of new Redcare products and has announced that it will stop maintaining existing services either by the specified date in 2025 or upon the expiry of current contracts.
Consequently, numerous clients will need to seek alternative solutions to maintain necessary security levels and comply with ongoing insurance conditions to remain covered in cases of fire or theft.
Berkeley Alexander explains that it is critical for affected customers to consult with their insurers to confirm that any new arrangements adhere to the contractual minimum standards set by their insurance policies.
Despite the 2025 deadline appearing distant, the urgency to initiate changes is significant due to the potential ramifications of non-compliance.
Geoff Hall, chairman of Berkeley Alexander, emphasized the importance of immediate action as the development is expected to impact thousands of customers in the UK.
“It’s vital that intermediaries speak to those clients with Redcare contracts as soon as possible to ensure continued compliance with insurance requirements. Failure to comply could mean a claim is rejected in the event of a theft or fire incident,” Hall said.
Hall also highlighted the collaborative role of intermediaries and general insurance providers in delivering the best cover at the right price.
“The advice and support of a GI provider will be critical, as we anticipate insurers will see a peak in demand from commercial customers. Those providers like us with strong relationships with insurers will be key to securing and maintaining the best policy cover possible,” Hall said.
The general insurance provider’s call to action comes following AXA’s own warning over BT’s exit from the market.
“We believe that over 100,000 private customers and businesses will be affected, and they’ll need to find alternative solutions,” the insurer said. “These customers will probably be receiving calls and communications from a wide range of alarm maintenance companies, alarm suppliers, and other companies who may see an unexpected business opportunity.”
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