The events that have taken place in Reykjanes recently have had a significant impact on NTI's financial position. The Directorate must at all times have funds to pay compensation for damage to property, contents and other movable property insured with NTI.
The authorization to increase NTI's premiums will be exercised as of January 1, 2025 and they will be collected with a 50% surcharge alongside fire insurance premiums. The premium for real estate, contents and other movable property increases from 0.025% to 0.0375% of the insured amount.
As an example of the effects of these changes, the premium to NTI on an ISK 80 million property will increase from ISK 20,000 per year to ISK 30,000 per year, and the premium on contents insurance for ISK 20 million will increase from ISK 5,000 to ISK 7,500 per year.

More about Iceland's Natural Catastrophe Insurance and premiums
Natural Catastrophe Insurance is a public institution whose role is to insure real estate and fire-insured movable property, including contents, against damage caused by earthquakes, volcanic eruptions, landslides, avalanches and floods.
Among the fees collected alongside fire insurance premiums from the general insurance companies (Sjóvá, TM, Vörður and VÍS) is a statutory premium that goes to the Icelandic Natural Disaster Insurance (NTI). For decades, the premium has been collected, regardless of risk, on properties throughout the country as a fixed percentage of the fire insurance value of real estate and the insured amounts of movable property.