Avalanche hazard is a threat to many residential areas in Iceland. In 1995 two avalanche accidents, causing a total of 34 fatalities in areas thought to be safe, prompted research on avalanche hazard assessment. A new method was developed, and in 2000 a new regulation on avalanche hazard zoning was issued. The method and regulation are based on individual risk, or annual probability of death due to avalanches. The major components of the method are the estimation of avalanche frequency, run-out distribution and vulnerability. The frequency is estimated locally for each path under consideration, but the run-out distribution is based on data from many locations, employing the concept of transferring avalanches between slopes. Finally the vulnerability is estimated using data from the 1995 avalanches. Under the new regulation, new hazard maps have been prepared for six of the most vulnerable villages in Iceland. Hazard zones are delineated using risk levels of 0.2×10–4, 0.7×10–4 and 2×10–4 a–1, with risk less than 0.2×10–4 a–1 considered acceptable. When explaining the new zoning to the public, a measure of annual individual risk that allows comparison with other risks in society has proven advantageous.