Lloyd's Chairman Lord Levene has called for increased investment in risk management to combat the threat of terrorism.

Speaking at Lloyd's fifth Annual City Dinner in London last week, Lord Levene said terrorism is the greatest security threat the UK faces. But he told delegates more needs to be done to counter the risk of homegrown terrorism in particular.

"The majority of global business leaders... do not really understand the impact for business, and they are unsure what they might do in response."

Lord Levene also cited risks to supply chains and technology as paramount security issues.

He reminded delegates that Lloyd's posted a record profit for 2006 of more than £3.5 billion ($8.59 billion) after a benign catastrophe season. And the UK financial services industry has experienced soaring growth over the past six years, from 5.5% of GDP in 2001 to a current 9.4%.

Lord Levene highlighted three developments over the past year that helped drive Lloyd's business forward: Berkshire Hathaway taking over the management of Equitas liabilities and finally settling any residual legal liabilities of Lloyd's in respect to the Names reinsured by Equitas, the opening of Lloyd's China Reinsurance Company Limited in Shanghai and the ongoing reforms designed to modernise market infrastructure.