The Iceland Catastrophe Insurance (ICI) was founded in 1975 as a public undertaking by a special Act of the Parliament of Iceland. The ICI functions as an insurance company. The purchase of catastrophe insurance for earthquakes, volcanic eruptions, avalanches, rock slides and floods is compulsory for all real estate; as well as for contents insured against fire. Buildings are insured according to their valuation for fire as assessed by the Registers Iceland. Since fire insurance of buildings is compulsory in Iceland, all buildings are likewise insured against natural perils covered by the program.