Comparative Research on Catastrophe Insurance and the Suggestion for China

China is one of the countries that are most vulnerable to the natural catastrophes, however, it lacks of catastrophe insurance. Through the study of Japan's earthquake insurance, New Zealand's earthquake insurance, California's earthquake insurance, American national flood insurance programme, British flood insurance and Florida hurricane insurance, the paper finds that catastrophe insurance cannot be sustained by the private insurance market and the intervention by the government is necessary and beneficiary. China should establish a system of catastrophe insurance backed by the government as soon as possible through the test of earthquake insurance.