In the increasingly serious situation of environmental risk problems, environmental liability insurance system is not only one of the important means for environmental risk management, prevention and control, but also has a crucial function for risk socialized distribution. Through reasonable risk distribution among responsible bodies, the originally over-concentrated risk responsibility in the individual enterprise can be shared to such subjects as insurance company and the society, in order to strongly promote the balance and coordination of interests among the responsible parties. However, there are problems in China's environmental risk liability allocation mechanism at present, such as the enterprises' lack of enthusiasm to insure, the excessive pressure on insurers to bear risks and the poor underwriting capacity, and the need to strengthen government's supervision and management mechanism. Based on the beneficial experience of foreign risk distribution and benefit coordination mechanism, the study puts forward such suggestions and countermeasures to improve the risk distribution mechanism of environmental liability insurance as follows: Firstly perfecting relevant laws and regulations, enhancing the mandatory nature of liability insurance, and clarifying the risk responsibility of the insured enterprises; secondly expanding the coverage scope, innovating insurance types, promoting the re-dispersion of underwriting risk, and reinforcing the risk-bearing capacity of insurance companies; thirdly strengthening risk assessment and supervision, establishing and improving environmental compensation fund mechanism, and giving full play to the government's leading role in risk allocation.