We have blue color for the mountains, white for ice and glaciers and red for fire - volcanic activity. Appropriate, don't you think?
It wasn't until on December 1, 1918 that this flag got full recognition. At that time Iceland was under the king of Denmark, although it became a separate kingdom in 1918.
When we finally got our independence, on June 17, 1944, the flag was slightly changed and the blue color got a bit darker than before.
It is said that originally the blue and white color were related to the traditional colors of clothing that people wore in Iceland in the 19th century.