What is it?

Bad weather can hit fast, so we need to be prepared. That’s why we’ve partnered with The United Nations Capital Development Fund (UNCDF) to bring you quick-response insurance cover, so if your area is hit by a cyclone, you could get paid – fast.

How it helps you

Our Cyclone Response Cover provides you with urgent cash to ease the immediate financial impact of a cyclone that affects your location based on the criteria we’ve set out. It’s designed to help you in three ways:

1

It's flexible

There are three options of cover for you to choose from.

2

It's affordable

It's a single payment for the policy period (August to July) - which with our basic level of cover is less than TOP2 a week*.

3

It's fast

Our system automatically calculates payment based on the wind speed and distance of your insured location from the cyclone path, and you get paid – fast.

*Cost is calculated using a basic level of cover. For full details, please read the policy wording. Pricing will vary depending on your selected level of cover.

How it works

This type of insurance uses smart technology to record wind speed and to locate how far away the cyclone path is from your location. It works like this:

Buy a policy and choose the level of cover that suits you. Your cover will start 30 days after policy has been accepted.

If a cyclone hits, we get alerted and assess your payment based on the wind speed and distance of your location from the cyclone path.

We send an SMS or email to let you know if you're eligible to receive a payment or not.

We aim to pay you within seven working days of being alerted.

How we pay you

We use the payment table below to work out how much we’ll pay out to you after a cyclone hits. So for example, if you have TOP10,000 cover and a Category 2 cyclone hits within 25km of your insured location, we’ll pay out TOP2,000 which is 20% of your TOP10,000 cover amount.

And don’t worry if you don’t have a bank account, we can also transfer to Digicel MyCash accounts.

Payout % based on your location

If a cyclone hits within 25km or less

If a cyclone hits over 25km and up to 70km

Category 1 cyclone - wind speed 119-153km/h 
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 119-153km/h.
Category 1 cyclone - wind speed 119-153km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 119-153km/h.
0%
Category 1 cyclone - wind speed 119-153km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 119-153km/h.
0%
Category 2 cyclone - wind speed 154-177km/h 
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 154-177km/h.
Category 2 cyclone - wind speed 154-177km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 154-177km/h.
20%
Category 2 cyclone - wind speed 154-177km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 154-177km/h.
0%
Category 3 cyclone - wind speed 178-208km/h 
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 178-208km/h.
Category 3 cyclone - wind speed 178-208km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 178-208km/h.
40%
Category 3 cyclone - wind speed 178-208km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 178-208km/h.
20%
Category 4 cyclone - wind speed 209-251km/h 
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 209-251km/h.
Category 4 cyclone - wind speed 209-251km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 209-251km/h.
70%
Category 4 cyclone - wind speed 209-251km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 209-251km/h.
40%
Category 5 cyclone - wind speed 252+km/h 
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 252+km/h.
Category 5 cyclone - wind speed 252+km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 252+km/h.
100%
Category 5 cyclone - wind speed 252+km/h
Based on the Saffir-Simpson hurricane scale. Defined by a wind speed reached of 252+km/h.
60%

This is a summary only. Please make sure you read the policy wording and cover documents to understand the terms, conditions, limits and exclusions that may apply.

How much does it cost?

Policy price is based on your level of cover.

Option 1 - TOP1,000 cover

Option 2 - TOP3,000 cover

Option 3 - TOP10,000 cover

Tonga 
Tonga
TOP80 per year (equal to just TOP2 per week)
Tonga
TOP240 per year (equal to just TOP6 per week)
Tonga
TOP800 per year (equal to just TOP20 per week)

Frequently Asked Questions

What kind of insurance is Cyclone Response Cover?

Cyclone Response Cover is a type of parametric insurance, which is cover that’s triggered by a parameter such as a metric or an index. In this case, wind speed of a cyclone.

Unlike traditional insurance, you don't need to provide an engineer's certificate to get cover for cyclone damage, and you don't need to lodge a claim. We will simply pay out when your insured location is impacted by a cyclone, based on the criteria we've set out.

Why do I need Cyclone Response Cover?

Tonga is a high-risk area for exposure to natural hazards of which cyclones are the most common, and you may be left out of pocket if your location or belongings are damaged by a cyclone.

Our Cyclone Response Cover aims to provide you with urgent cash to ease the immediate financial impact of a cyclone.

Cyclone Response Cover is not a replacement for house insurance or contents insurance, and you may choose to take it out in addition to having house and/or contents cover for additional protection.

Who can buy Cyclone Response Cover?

Anyone can buy Cyclone Response Cover to help reduce the financial impact of a cyclone event in your location.

With Cyclone Response cover you can get cover for any location you would like to cover, so you can be prepared for potential damage to your home, business, farm or crops.

If you would prefer more cover, our house insurance or contents insurance might be better for you.

Any business or non-profit organisation can get Cyclone Response Cover too, but a separate policy is needed for each location it owns or operates – up to TOP10,000 cover for each.

How is this policy different to traditional insurance?

Our Cyclone Response Cover is different to traditional insurance in three ways:

  1. It’s available for everyone. Unlike House Insurance and Contents Insurance, Cyclone Response Cover doesn’t require you to have an engineer’s certificate, which can be costly and difficult to obtain.
  2. You don't need to lodge a claim. We will automatically pay if your insured location is within a certain distance of a cyclone that meets the criteria we’ve set out. You don’t need to lodge a claim or provide evidence of damage.
  3. Instant cash for immediate expenses. Cyclone Response Cover pays out quickly so you can use that money to help cover immediate financial needs after a cyclone event, whatever they may be. With traditional insurance you may have to use agreed suppliers to repair the damage to your property.
Will my policy cover multiple locations?

No. Each Cyclone Response Cover policy covers a single location only.

If you want to insure properties you own in different locations, you’ll need to buy a separate policy for each one.

How can I prove that I have insurance?

We’ll send you a welcome email along with a Certificate of Insurance and you can access a copy of Cyclone Response Cover policy from our website.

Why do you have a 30-day stand-down period?

We apply a 30-day stand-down period when you initially buy a Cyclone Response Cover policy. This means your cover will start 30 days after your policy has been accepted. This requirement only applies when you first buy a policy, not when you renew your policy.

Can I cancel my insurance policy?

Yes, you have a “free look period”. If you’re not completely happy with your policy, you can cancel it within 30 days of the start date, as long as you have not already had a claim paid. We’ll refund any premiums you paid and we’ll both regard this policy as never having started.

However, once you've passed the 30-day free look period, you will not be eligible for a refund if you ask us to cancel your policy after that date.

How do you determine payment eligibility?

Your eligibility for a payment is based on the cyclone category and the distance of your insured location from the cyclone path. We use independent data from the Joint Typhoon Warning Centre (JTWC) with eligibility determined by an independent monitoring agent called Weather Risk Management Services (WRMS).

WRMS map your insured location against the cyclone trajectory and then notify us if you are eligible or not for a payment, which we aim to pay-out within seven working days after the cyclone event.

How many times can I receive a payout in one year?

During the period of your policy, you will be paid up to 100% of the total sum insured. For example, if you have TOP1,000 cover and you receive a payout of TOP200 following a cyclone event, you will have TOP800 cover remaining that can be paid out in the event of additional cyclone events during the policy period. If you have received TOP1,000 in payouts, you will need to buy a new policy to cover you for the remainder of the policy period.

How are the wind speeds measured?

Wind speeds are measured using Joint Typhoon Warning Center (JTWC) Tropical Cyclone data.

JTWC is one of the Regional Specialized Meteorological Centers (RSMCs) in the southern hemisphere appointed by the World Meteorological Organization (WMO) for the Pacific region. The JTWC uses a 1-minute averaging period to calculate the Maximum Sustained Wind (MSW) values.

How do I make a claim?

With Cyclone Response Cover, you don't need to make a claim or provide evidence of damage. If a cyclone hits, we get alerted automatically and assess your payment based on the wind speed and distance of your insured location from the cyclone path. We send an SMS or email to let you know if you're eligible to receive a payment or not. We aim to pay you within seven working days of being alerted.

What if my contact details change?

It's important that you tell us if you change your mobile phone number, email address, or physical address. You can contact us here to update your details.

Any questions? We're here to help

We know it’s nice to talk to a human, so you can chat to one of our local team members by calling +676 24 066l or email us at pacific.parametric@tower.co.nz.

Contact us