Abstract: Unique nature of the geographical environment makes China a country with earthquake and other disasters. But even facing a potential market, Catastrophe insurance has not obtained positive fans in both supply and demand. Besides present law, there are many other factors, such as politics, economy etc. which lead to the current situation. Therefore, the development of catastrophe insurance should seek a breakthrough depending on law establishing, government support, prosperity of reinsurance market, risk awareness of ascension, and many other aspects to give full support to build up a catastrophe insurance system.