Agricultural policy insurance means that government uses policy support and financial subsidies to protect and support agriculture with the help of agricultural policy insurance institutions. At the same time, the government gives agricultural insurance of the country food security’ farm products supporting policies and many advantages, such as tax – free and insurance premium subsidies. The agricultural policy insurance improves the whole level of social welfare. However, in Jilin Province, the agricultural policy insurance business operated by commercial insurance institutions has some problem, for example rent-seeking behavior and low efficiency. Only standard agricultural policy insurance system, local government and the agricultural policy insurance institutions establish strategic cooperative relationship, the agricultural policy insurance system could play a big role in supporting agriculture, promoting the steady development of agricultural production and agricultural economic organizations stable income.