Insurance brokers could be held liable for missing coverage after Drammen fire
The trade group Forsikringsmeglerne says insurers who failed to advise customers on required policies may face financial liability after a large fire in Krokstadelva left many homes uninsured.
A devastating fire in Krokstadelva, Drammen, consumed 116 homes, exposing gaps in insurance coverage for many residents. Sixteen families were without contents insurance and two did not have building insurance, prompting a claim against DNB to treat the loss as if they were insured. Jon Steen, secretary-general of the trade body Forsikringsmeglerne, warned that insurance distributors - including bank staff and agents - must perform mandatory need-analyses before selling policies, and that failure to do so could create financial responsibility.
The association reviewed the regulatory framework and believes non-compliance is likely widespread across distribution channels, including digital sales. It calls for legal testing of the advisory duty to ensure sellers document adequate risk assessments, noting that only car liability insurance is compulsory in Norway.
Why it matters
Consumers may bear losses if insurers or their sellers neglect required advice, highlighting gaps in consumer protection.
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