Most people don't admit that they believe in heathen ideas, because most Icelanders are Christian. A small group of people though belongs to The Icelandic Asatru-society and they worship and offer sacrifies to the old pagan gods.
In daily life we can still see traces of this old religion. A lot of pagan names are still used, for instance as people's names, place-names , in the names of ships and several other things.