Greater international co-operation – including a concerted effort by the insurance industry on risk modelling – must be achieved to prepare for the huge challenge of climate change, says Lloyd’s Chairman Lord Levene.

Speaking at the British-Japanese Chamber of Commerce in Tokyo last week, he emphasised the need for broad and decisive action by business to tackle climate change.

“Our message is therefore that risk – and the skills and training to analyse, manage and prepare for it – needs to be high on the agenda of any board or management team, and the climate needs be a more important factor within that strategy,” he said.

“The insurance industry must model and prepare now for the increased financial losses climate change will bring.”

Lord Levene said business must take a two-pronged approach to climate change.

“I don’t think the end of the world is nigh. Nor do I think that the growing economies of Asia or anywhere else should forgo the benefits of economic growth that many of us in the developed world have taken for granted for so long.

“Only with the twin approaches of mitigation and adaptation can we succeed in meeting the climate change challenge.”