Natural Catastrophe Insurance of Iceland (NTI) is a government institution and functions as an insurance company. Catastrophe insurance is compulsory for all buildings as well as for contents insured against fire and government owned lifelines (infrastructure). Direct physical losses resulting from earthquakes, volcanic eruptions, avalanches, landslides, rock falls and riverine-, costal- and glacial floods are covered by the insurance.

The catastrophe cover is a stand-alone policy with a single premium of 0.025% for properties and contents and 0.02% for infrastructure. A deductible of 2% for each loss as well as a minimum deductible is applied.