Insurers could be left to mop up the damage as Australia faces the dramatic effects of potential climate change, according to new research released by the Committee for Economic Development of Australia (CEDA).

The research - called "Climate change: getting it right" - comprises nine papers from economists and climate change experts and was released at a CEDA conference on climate change in Sydney last week.

Authors were challenged to explore ways to reduce greenhouse gases with the minimum impact on economic growth.

Massachusetts Institute of Technology climate modeller Ronald Prinn claims the world faces a one in four chance of a global temperature increase in excess of three degrees by 2100 if little is done to curb greenhouse gas emissions.

With significant policy intervention, the odds are reduced to less than one in 20.

According to separate forecasts by Australia's national science agency CSIRO, climate change is likely to lead to a rise in sea levels and stronger tropical cyclones, including increased cyclone intensity around Cairns, North Queensland of up to 20% by the year 2050.

In March last year, Cyclone Larry caused insured damage estimated at $600 million when it struck Innisfail, North Queensland.