Given a lack of catastrophe insurance sectors and institutions,many of the vulnerable countries which are exposed to high levels of catastrophe risks have relied on post disaster funding and external aid to deal with catastrophe.Among these developing economies,some governments have the taxing power and wherewithal to deploy resources to handle catastrophe loss,however these huge unexpected pay out may have extremely negative effect on the development of whole national economy.To meet the long term sustainable growth of economies,it is also urgent for China to improving the current insurance institutional changes and utilizing alternative risk financing mechanisms to handle catastrophe risks.