The invention discloses a flame-retardant and fire-resistant cable insulation rubber for ships and a production method therefor. The raw materials are 20 parts of ethylene propylene diene monomer rubber 4045M, 0.5-0.6 part of vulcanizing agent DCP, 0.2-0.3 part of co-vulcanization agent TAC, 0.1-0.3 part of anti-aging agent MB, 0.1-0.3 part of anti-aging agent RD, 0.1-0.2 part of coupling agent A-172, 15-20 parts of aluminum hydroxide, 3-6 parts of ceramic glass powder, 1-1.5 parts of plasticizer No 1000 steam cylinder oil, 6-8 parts of fine talcum powder, 4-7 parts of reinforcing agent hydrated silica, and 5-8 parts of reinforcing agent calcined pottery clay. First, ethylene propylene diene monomer rubber 4045M is subjected to mixing for 1-1.5min, then the anti-aging agents, the coupling agent, aluminum hydroxide, the ceramic glass powder, the plasticizer, talcum powder and the reinforcing agents are added in order and after the above mixture is subjected to mixing for 7-8min, the mixture is unloaded and aired for above 24h; then the above rubber material is subjected to 2-3min, and the vulcanizing agent and the co-vulcanization agent are added in the last 20 seconds, the material after mixing is loaded in an open mill for thin-pass, after triangular packaging and square packaging are performed, sheets are obtained. The insulation rubber has simple production technology, low cost, small external diameter and light weight, is flexible and easy to bend, and is convenient for construction and installation.