Abstract: Flood and drought disasters, as the most significant natural disasters in China, have the characteristics of frequent occurrence and recurrence. As a market-oriented risk transfer mechanism, flood and drought disaster insurance is an important means of economic risk diversification in non engineering measures, which is of great significance for maintaining the stability of production and life of disaster stricken people and promoting post disaster reconstruction. At present, foreign countries have gradually established flood and drought disaster insurance systems to cope with flood and drought disaster risks, but different countries have their own unique development history, insurance systems, and implementation models of flood and drought disaster insurance. By reviewing the natural disaster situations, flood and drought disaster insurance systems, and implementation models of typical foreign countries, and based on relevant explorations of the development process and pilot projects of flood and drought disaster insurance in China, this paper systematically analyzes the current problems of flood and drought disaster insurance in China: (1) Insufficient legislation and imperfect system of flood and drought disaster insurance in China; (2) Insufficient technological empowerment and data sharing objectively limit the insurance industry's ability to prevent and mitigate disasters; (3) Insufficient penetration rate of flood and drought catastrophic insurance, and low proportion of loss compensation borne by the insurance industry; (4) The public is overly dependent on government disaster relief and charitable donations, and various social entities lack awareness of risks and insurance for flood and drought disasters. In response to the current problems in China's flood and drought disaster insurance, and based on the experience of foreign flood and drought disaster insurance, targeted suggestions have been put forward, which have reference significance for the implementation of China's flood and drought disaster insurance system.