Abstract: Since reform and opening up of our country, the insurance business is developing rapidly, and the influencing scope and power is extending continuously, which makes insurance more and more functional in the construction of harmonious society, serving “Agriculture, Rural areas, and Farmers” and complementing social security system. As a financial product of avoiding risks, insurance possesses the basic function, loss compensation and economic payment , and the derivative disaster prevention, impairment and capital financing. Since the 18th CPC National Congress, poverty alleviation has been involved in “Four Comprehensives” strategic blueprint, and precise poverty alleviation was implemented vigorously. Therefore, the functions of insurance agree with the theory of precise poverty alleviation actively, and insurance business could be introduced into the poverty alleviation. In this study, the effects of insurance in rural poverty alleviation were introduced on the background of precise poverty alleviation, including the necessity, advantages, developing status, and suggestions, as an exploration to the insurancesupported poverty alleviation research area.