Canadian businesses are ill-prepared for climate change and will need to do more to adapt to the implications of global warming, according to Lloyd’s Chairman Lord Peter Levene.

In a speech to the Vancouver Board of Trade, Lord Levene spoke about Canada’s ability to deal with coastal flooding, lower water levels in lakes and reduced river flow on prairies.

Based on current models, Canada will soon have to cope with permafrost thawing and a shrinking Arctic ice cap, but the uncertain legal situation makes it hard for businesses to obtain appropriate cover.

“Recent legal developments are making it difficult for insurers to predict the cost of claims, driving up the price of coverage for both Canadian corporations and individuals,” he said.

“We need to estimate the full costs of climate change and choose adaptation strategies now before it’s too late.”

Lord Levene says there has also been concern by underwriters that the demand for terrorism insurance is underwhelming – especially when the Canadian Security and Intelligence Service believes an attack on Canada is probable.