Loss and damage from natural disasters have increased substantially over the last couple of decades. In 2020, for example, 980 natural disasters struck the world, causing significant economic loss, destroying major infrastructure, and claiming human lives.1 A single natural disaster can have enormous financial impacts. Some of these damages and losses can be reduced and transferred if appropriate policies and actions are applied. For this reason, Climate and Disaster Risk Management (DRM) has gained importance on international agendas and in many organisations. The main idea behind DRM is to focus on managing the risks that turn hazards into disasters.