In recently years，as natural calamities happen high frequently，the insurance market in China faces great pressure for risk diversification，and the defect and shortage of traditional reinsurance become prominent. Under this background，the insurance industry is looking for other innovative risk transfer methods to make up for the shortage of the traditional reinsurance，and also is trying to transfer the risk from insurance market to capital market. In this case，insurance risk securitization emerged. This article analyses the concept of insurance risk securitization and the difference between insurance risk securitization and insurance asset securitization，which have similar transaction structure but with different function and legal relationship. Then this article analyses insurance risk securitization transaction structure，the transaction parties and the legal relationship between them. Finally，considering the legal and regulatory system in China，this article proposes a suggestion of how to establish a legal and regulatory system with regard to the insurance risk securitization in China.