The economy losses caused by catastrophe events have increased in recent years resulting in the (re)insurance companies faced a serious impact. According to recently lectures, the reinsurance market could not provide the sufficient demand for managing catastrophe risks and the insurers transfer the attention to the capital market by insurance linked securities to hedge the underlying risks in conjunction with the high liquidation and sizable capital, and enhance the effect of dispersing catastrophe risks. The main purpose and direction of this study is divided into three aspects: First, we investigate catastrophe bonds under catastrophe risks, credit risks, and liquidity risks considering the issue of the Special Purpose Vehicle and the traditional insurance company, and study the empirical analysis by the trading data of the catastrophe bond. Second, we evaluate the prices of hurricane index futures and futures option under liquidity risk by fitting the dynamics of hurricane index and estimating the parameters. The pricing formula and hedging strategies of hurricane index futures and futures option is developed in the second year. Third, we investigate the reinsurance market, CAT bond market and hurricane-linked derivatives market to find the optimal strategies in cost and risk and analysis the management decision using reinsurance, CAT bond and hurricane-linked derivatives.