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Iceland agency checks disability payments but gives no country-specific answers

Saturday 19th September 2026 on 16:00 in Iceland

disability benefits, Iceland, Social Insurance Administration

Iceland’s Social Insurance Administration regularly verifies benefit payments and reclaims overpayments, but has not said whether it specifically investigated the reasons for unusually high disability benefit rates among people from certain countries, mbl.is reports.

More than 31% of people from Kosovo living in Iceland receive disability benefits, according to figures previously reported by Morgunblaðið. The rate is just under 29% among people from Morocco, while slightly more than 21% of people from Cape Verde receive such benefits. People from these countries are 3.3 to 4.1 times more likely to receive disability benefits than Icelanders.

The administration was also asked whether the high proportion of disability benefit recipients from these nationalities raised suspicions that the system might be being exploited unlawfully.

In a written response, the administration said it conducts regular checks to verify the validity of payments. The checks are based on various factors, including residence and income.

In recent years, the agency has placed greater emphasis on external oversight and strengthened cooperation with other authorities to reduce the risk of abuse of the social security system. This includes participation in multi-agency forums dealing with organised crime, as well as bilateral cooperation with authorities including the police and Iceland Health Insurance.

The administration said it has broad powers to obtain information from other authorities, individuals and third parties when there is a substantiated suspicion that someone is receiving benefits on the basis of false or misleading information.

When such suspicions arise, the case is investigated thoroughly. Information may be obtained from other authorities and parties, and the person under investigation is required to cooperate and provide the necessary information.

If payments are found to have been made on incorrect grounds, they are stopped and the overpaid amounts reclaimed. Serious cases are reported to the police, the administration said.

However, its response does not say whether this has happened in cases involving people from Kosovo, Morocco or Cape Verde, whose rates of disability benefit receipt are notably higher than among people of Icelandic origin.

Source 
(via mbl.is)