Extent of cover

Extent of cover is based on information from the private insurance companies, as at September 2014, The Iceland Catastrophe Insurance (ICI) covers assets of ISK 10,025 billion situated all over the country as opposed to ISK 9,700 billion in August 2013. This represents an increase of 3.35% which is due to price increases as reflected by the Index of Building Costs. Because of the compulsory nature of the insurance, assets from relatively low risk areas such as the Capital region (55%) make up more than half of the portfolio. There are also notable exclusions from cover, such as the hydroelectric power plants in the central region which are insured separately on a facultative basis and some parts of the Aluminium smelting plants (the largest industrial concerns in Iceland) are also exempt from cover. Contents of government buildings (such as hospitals, schools, government offices and telecommunication installations) are as a matter of public policy generally not insured against fire and hence not against the catastrophes covered by the ICI.