In recent years, Chinas insurance industry develops rapidly, average annual growth surpasses 25 percent and is one of most rapid development industries. However, there is serious unbalance between each city and the unbalance appears in insurance scale, insurance density, insurance extent and the number of insurance agencies. Main indexes which measure urban insurance industry development mainly include insurance fee scale, insurance fee scale growth rate, insurance density, insurance extent, the number of insurance agencies and the number of insurance headquarters. The factors which affect urban insurance development mainly include GDP, population number and distribution, urban residents per capita disposable income and geological location and so on. On the whole, insurance industry development level of west and middle part of China lags behind the east part, however, insurance industry development level in some cities in west and middle part of China is quite good.