DAVOS (Bloomberg) — Lloyd’s of London Chairman Peter Levene said climate change is the “No. 1” issue for the world’s biggest insurance market because of the unpredictability and cost of potential weather-related claims.“In 2005 we paid out $6 billion for the hurricanes and it was getting on for $60 billion for the industry, which is unheard of. Last year, nothing,” Levene, 65, said today in an interview at the World Economic Forum in Davos, Switzerland. “Climate change is definitely there.”

Zurich Financial chief executive officer James Schiro concurred, saying: “Of the 10 worst storms, six have occurred in the past two years.” Asked if climate change means higher premiums for insurers such as Zurich, Schiro said in Davos: “You’ve clearly seen that in the Gulf coast region” from Hurricane Katrina.

Lloyd’s has increased the amount of business it can accept this year to a record $16.1 billion ($32 billion) as prices come under pressure for risks unaffected by the US hurricanes of 2005.