In recent years, China’s agricultural insurance develops rapidly and has made remarkable achievements in the indicators such as premium input, guarantee scope, the number of participating farmers and so on, at the same time, however, one of the focuses such as low level of security, insufficient and not-useful agricultural insurance is reflected by all parties. This paper combines the related theories of welfare economics and insurance economics, follows the logic theme that the promotion of agricultural insurance level must optimize its financial subsidy policy, reviews and analyzes that the implementation of financial subsidy policy is the premise, effective method, powerful measure and important channel for improving agricultural insurance level. Finally, according to the insufficiency of current researches, based on present background, this paper predicts the research topics in this field in the future and further discusses its optimization path.