The World Bank, the Secretariat of the Pacific Community and Japan have teamed up with Pacific nations to launch the Pacific Catastrophe Risk Insurance Pilot.
The programme, the first of its kind, has been launched so Pacific countries can to be better protected against natural disasters.
The Marshall Islands, Samoa, Solomon Islands, Tonga and Vanuatu are the Pacific countries taking part in the pilot which will provide their governments with immediate funding if a major natural disaster occurs.
Pacific countries are some of the most vulnerable in the World to natural hazards, which can cause millions of dollars of damage, and threaten the lives of tens of thousands of people.
Tonga's Minister for Finance and National Planning, says the project will allow his government to better respond immediately to phenomena like tropical cyclones, earthquakes and tsunamis.