Australia's Great Barrier Reef is in such dire condition it should be insured for A$56 billion (US$38 billion) against climate risks and environmental damage, global law firm Clyde & Co says in a report.

The report, 'Threats, challenges, and opportunities for the sustainable future of Australia's greatest environmental asset', states that the Barrier Reef risks being overwhelmed by coral bleaching, sea-level rises, ocean acidification, and pollution.

"Aside from being a World Heritage site, the Great Barrier Reef is an economic asset that provides jobs, income and government revenue," the report's author, Jacinta Studdert, a Sydney-based environment partner at Clyde & Co, said in a statement. "Like other economic assets, it should be insured against certain catastrophic events to guarantee its long-term resilience."