Nearly half of lesbian, gay, bisexual, transgender, and intersex Australians hide their sexual identity at work, while one-in-five Australians report discrimination because of their skin colour, according to a new report.

The findings are part of international festival Dive In, initiated by insurer Lloyd's, which is looking into the progress and activity of diversity and inclusion in workplaces.

The report found six in 10 LGBTI people in Australia experience verbal homophobic abuse in the workplace, while two in 10 experience physical violence.

"Research shows that when LGBTI staff are 'openly out' to all, businesses see a 15 to 30 per cent increase in productivity and retention rates improve by 10 per cent," said Chris Mackinnon, Lloyd's general representative in Australia, in a statement.

"If someone is spending half their energy hiding their reality, leading a dual life and making excuses, then they are not being authentic at work and they won't be as engaged or productive."

Five years ago, a US study found almost 50 per cent of LGBTI employees had not revealed their sexual identity at work.

Cultural, disability discrimination

The study looked at other areas of discrimination as well.

Lloyd's found if English is not a worker's primary language, they are three times more likely to experience workplace discrimination than a native English speaker.

"Australia is one of the most multicultural countries in the world, with more than one-third of us having migrated here over the last 70 years," Mr Mackinnon said.

"Research shows that having a culturally diverse workforce is good for business: it leads to creativity in product innovation, marketing and advertising, and better customer engagement."

In addition, the report estimated that $43 billion could be added to Australia's GDP over 10 years if disability discrimination is addressed, while $25 billion could be added if people aged over 55 were able to find paid work.

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One in five people have some form of disability, but Australia has one of the poorest employment rates for people with a disability in the developed world, ranking 21 out of 29 OECD countries.

The report also found there was more progress on gender diversity than other areas.

Companies with high gender diversity are 15 per cent more likely to have above average returns for their industry, the report found.

Lloyd's chief executive Inga Beale, who was appointed in 2013, is the first female head in the company's 328-year history and launched the report in Sydney via video messaging.