Living in this risk society, human activities increase the severity and the frequency of the natural disaster e.g., typhoons, flood, earthquake, and tsunami. Scientific evident shows that the intensification of extreme weather events can be linked to greenhouse gases caused by human activities. Furthermore, the collapse of Wei-Kuan building complex in Tainan is under investigation and might be found that the structural design problems and poor construction quality are the main factors in this event. How we can manage risks and what governments should cope with these tasks are crucial and complex. Based on the societal risk management, this article will introduce the fundamentals of catastrophe risk management and the role of government in risk society. Using 0206 Tainan Earthquake as a case study, we will discuss the current earthquake insurance scheme and come up with a proposal to reform Taiwan Residential Earthquake Insurance.