Are there wolves in Iceland

Norse mythology had something similiar. The Word "Berserker" originally referred to Legendary Scandinavian warriors, whose frenzy in battle transformed him into a wolf or bear. The Word itself is derived from Ber or "Bear" & Serkr or "Shirt".

Some postulate that this may have contributed to the legends of "Werewolves".

There were also Ulfhednars, whose name means Wolf Hide. They also could be called Ulfsarks.