Insurance industry participated in the United Nations climate conference in Paris in December 2015 and offered products that were regarded as essential to financial resilience in the face of climate disaster risk. In China, however, the government traditionally has played the central role in disaster aid, relief and compensation. Nonetheless, the government＇s Whole-Nation System needs reform and a shift to an insurance-based model because the current system is not financially sustainable; and a private insurance system would do a better job than government regulation alone in mitigating risks of climate change. To accomplish this shift, the Whole-Nation System （regulation by the government） should be combined with catastrophe insurance （regulation by insurance） to capitalize on the strengths of the private market and public government oversight. Under such a proposed hybrid system, the government should support private sector efforts to make catastrophe insurance the key vehicle for the financing and loss mitigation of risks related to climate change.
