The Pacific Catastrophe Risk Insurance Company, which was established a year ago, is providing $US45 cover for Tonga, the Cook Islands, the Marshall Islands, Samoa and Vanuatu.
The company, which is owned by the Pacific Island countries, was established with the assistance of the World Bank.
During the pilot period of the scheme, in January 2014, Tonga was hit by severe (category five) Cyclone Ian.
A state of emergency was declared for Vava’u and Ha’apai.
More than 1000 buildings in Ha’apai were destroyed and 2000 people were left homeless.