European insurance companies are eager to see emerging wireless M2M (machine-to-machine) technologies and location-based services be applied toward increasing both mobile and fixed-location security, according to telecom market researcher Berg Insight. Insurers now frequently advise customers to install security systems that make use of wireless networks and GPS, Berg says.

“If you buy a high-class luxury car in any European country today, your motor insurer will most probably require that it is equipped with a GSM/GPS anti-theft system,” according to Berg senior analyst Tobias Ryberg said. Ryberg reports that insurance industry organizations in Belgium, the Netherlands, Norway, and the UK have developed national industry standards for vehicle tracking devices that are intended to guide the development and selection of car security systems.

In a report last year on location-based services in Europe, Berg senior analyst Johan Fagerberg noted that there had “already been several cases where tracking of mobile phones have led to the recovery of valuable cargo from stolen vehicles.”

Wireless M2M is also increasingly being used for fixed location security, according to Berg's research. The research firm notes that “a single landline connection between the premises alarm system and the alarm receiving center is no longer deemed sufficient for high security situations.” The use of a secondary wireless link reduces the chance of disruption and makes communication much more reliable, Berg says. Late last year, the UK adopted a European standard for alarm systems (EN 50131) that requires dual signaling in most stores and offices.

Overall, Berg estimates that there will be nearly four million alarm systems connected to wireless networks in Western Europe by 2010.

 
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