The article provides an in-depth analysis of the challenges and improvements in the custard apple income insurance policy in Taiwan, with a focus on the impact of natural disasters and market fluctuations on the custard apple industry in Taitung County. It discusses the history of the policy, its coverage, premium subsidies, and the claims calculation formula. The article also highlights the need for improving the insurance rate, addressing moral hazard, and reducing the burden of premiums on farmers. Additionally, it touches on the high loss rate and excessive protection difficulty, the risks of adverse selection, and moral hazard in agricultural insurance. Proposals are made to adjust the insurance amount, reduce excessive protection, and evaluate the conversion of the policy into a meteorological parameter type to improve the sustainability of the agricultural insurance market and better protect farmers' interests.