Consumer Product Safety Commission is supposed to force the manufacturer to issue a recall when a product is unsafe, but for whatever reason, they neglected to do so with the Electrolux dryers. UL finally updated their standards for dryers to specifically address the issue with the dryers, so Electrolux was forced to change their design in about 2013. But by that time, they had produced millions of the faulty ones.
I haven't been involved with any Electrolux dryer fires that caused fatalities, but I'm sure there have been injuries. By my estimate, I have looked at the 3rd most fires caused by that specific issue. There was a guy that did a lot of exemplar testing that proved what the actual defect was, and he has looked at over 3,000 of them. Electrolux told insurance companies that if they hired that particular expert, they would take the claim to trial...no exceptions. So they essentially forced him out of the market. There was another expert that was the one that testified at a class-action lawsuit against Electrolux, which they actually settled (of course, without admitting any fault). I just assume he has seen more of them than I have, but he may not have.
Insurance companies will always cover the losses, up to what your policy covers. What I deal with is the insurance company suing the manufacturer to recover what they paid on the loss. It's a specific type of lawsuit called subrogation. It's the vast majority of the work that I do.