Agricultural weatherindex insurance, with objective conditions as the insurance object, can effectively avoid the adverse choice and moral harming, has become an important way to cope with the weather disasters in developing countries and is an important direction of agricultural insurance. Based on insurance economics, the market enhancement theory and so on, this paper studies and summarizes the related literatures from theory and practice such as the institutional advantages, developing path, the institutional practice and the role of government in agricultural weatherindex insurance at home and abroad, and gives the important points in the future research in the perspective of how to lower basis risk and how to set up and perfect the sharing mechanism for big disasters by agricultural weatherindex insurance.