In 2004, China began to carry out policy-oriented agricultural insurance pilot experiment. By the end of 2009, the premium income scale of China's agricultural insurance had ranked second in the world and first in Asia. In this article, through in-depth analysis on the experiment background of China's policy-oriented agricultural insurance, the objectives of its implementation are firstly revealed. Secondly, based on clarifying the development process of China's policy-oriented agricultural insurance, we analyze and summarize China's policy-oriented agricultural insurance development effectiveness by taking the realization degree of policy objectives as the evaluation criteria, and also excavate out the main existence and potential problems. Finally, some proposals to perfect the system of China's policy-oriented agricultural insurance are briefly put forward. (C) 2010 Published by Elsevier B.V.