Tragic fire in Drammen Norway

Around 100 houses have burned down, and more than 450 people have lost their homes in a dramatic fire in Drammen, just outside Oslo. 

We have asked IR at Protector whether they are "on the list as insurers" and the answer is "no, we have no exposure in the fire".  The question is more relevant than you might think, because you often see a housing association insure either i) all these properties or ii) large groups of them. This type of risk is within Protector’s risk appetite in both Norway and other countries, and Protector covers such risks nearby this fire. 


What if this had been a Protector client?

A property insurance policy in such a situation typically covers the building, while contents, cars etc. are covered individually through the homeowners’ policies.

The total claim could be broken down as follows:

  • Property rebuilds, by far the largest part                      600-800 MNOK (depending on requirements from authorities)

  • Contents, more than you’d think.                                 150-200 MNOK

  • Rental costs for 450 people for two years                    50-100 MNOK

  • Cars, garages, other objects                                           50-100 MNOK

  • Other external costs and coverages                                25-50 MNOK

  • In total 875-1 240 MNOK

Our guess (we both have background from Insurance) will be 1.0 BNOK. If Protector "had it all" they would have covered rental cost and property rebuild and sent everything above 200 MNOK (our view) to the reinsurance world. It is less than 1.5 pp on the 2026 Combined ratio and not really very significant. 

 

What now in Norway?

Gjensidige, If, Tryg and Fremtind (the big four) are now pouring everything they can in a high-quality claims handling process and they are good at it. From what we know, Gjensidige have got the by far biggest hit. Finans Norge (the insurance association) will also activate its claims-handling functions, and a communication will be sent out including claims estimates no later than tomorrow. The claims handling process will be softly coordinated between the "big four" and other involved companies. When such a tragedy occurs, the tradition in Norway is close cooperation and relatively united behaviour. The first thing that will be announced tomorrow is a preliminary cash settlement that will be paid immediately to each family. My guess would be 100,000 NOK per adult and 25,000 NOK per child paid at once to cover for expenses. There is no reason why this should not happen since content insured and rental costs will be far higher for everybody and it would help families in a very difficult and traumatic situation.

 

All the best to the 450 people suffering 

We sincerely feel with you, and all the best when you begin rebuilding your life –Thankfully no lives were lost.

The rest of us are reminded to document our own belongings and take necessary steps to prevent fire in or near our own homes. This could just as well happen to you and me.

 

Best regards,
David and Sverre

 

Hvaler, Norway

19.07.26

Disclaimer:
Hvaler Invest is a significant shareholder so you cannot trust us (or perhaps you can?)