The Norwegian Natural Perils Pool was formed on 1st. of January 1980. Its activities are governed by the Natural Perils Insurance Act and the Rules for the Norwegian Natural Perils Pool.

Natural perils insurance is a compulsory cover linked to fire insurance in Norway. All insurers providing fire cover in Norway must be members of the Pool.

The pool is organized as an equalisation pool, which means that it is the companies themselves who has all contact with their policyholders and conducts the claims handling, while the pool settle claims and expenses in connection with these among the pool's members in proportion to their share of the pool, which corresponds to their share of the market for fire insurance in Norway.