Flood and drought are the major natural risks to China crop production.Data relevant to flood and drought damage ratios in 12 major crop producing provinces from 1978-2009 is collected,and Pearson correlation coefficients are calculated.Research reveals that:(1) there are moderate to high flood and drought correlations between some sampling provinces and all of these major crop producing provinces can be divided into 4 agricultural risk regions:Northern region,North China region,Huai-Yangtze River region and Pearl River region;(2) regional correlation of agricultural risks will affect insurance operation and put insurance companies at high insolvency risk.Finally,three major solutions,reform of premium rating,risk exchange besides crop reinsurance and management of natural catastrophic risks,are discussed.