Seismic risk management is a very complex process,involved engineering mitigation measures and non-engineering countermeasures.The former prescribed in seismic design codes and prevention counter plans,played a great role in earthquake disaster reduction of China in decades.In the latter,the economy,finance,society are very active in market system,and must be paid more attention.The systemof seismic risk management in China is summarized in this paper.Nowadays,it is on the transition stage,from the planned economy system to the market system.The status of earthquake insurance is briefly introduced and catastrophe insurance derivatives are suggested as supplements.The important issue in the pricing of financial instruments is how to integrate with engineering seismic risk assessment.Seismic risk assessment in general consists of two parts: seismic hazard assessment and vulnerability evaluation.Seismic hazard has many sectors such as on ground motion,surface faulting,liquefaction,landslides,remained deformation.Vulnerability evaluation is to infer a conditional probability of the potential damage of engineering structure given various earthquake intensities.Other financial instruments can also be used for reference in the management system,for example,mitigation loans and tax rebate.Banks and financial institutions can provide financial support to the property owners who have adopted cost-effective engineering mitigation measures.To encourage the adoption,a homeowner can get a rebate on taxes if he has adopted an engineering measure against earthquake damage.