Agricultural insurance is an effective way to prevent agricultural risks, carry out disaster compensation and promote the stable development of agriculture. In recent years, the development of agricultural insurance in China showed a good momentum. The system arrangement of government on agricultural insurance became clearly, and the scale of agricultural insurance market expanded continuously. Furthermore, a large scale of insured subject-matters was developed and the development model was fitting with China’s agricultural development. As an important content of reform of the supply front, agricultural insurance is facing new situation and challenge. Development of modern agriculture has more requirements on agricultural insurance and the policy of financial support provides a large development space for agricultural insurance. To properly develop agricultural insurance, the importance of agricultural insurance should be realized and the existing development modes should be changed to adapt to the new situation. Besides, the innovation of insurance products and business model should be accelerated, and the agricultural insurance market regulation and supervision ability should be effectively improved.