Abstract: Since the pilot of central finance forest insurance premium subsidy was carried out in Chengdu, the coverage of forest insurance has been expanding. However, due to some defects in the current insurance subsidy policy, it is difficult for forest insurance products to meet the demand of farmers. This paper reviews the development process of China's forest insurance, and summarizes the development results of forest insurance to take Chengdu as an example. At the same time, it analyzes and studies the main problems such as the slow growth of commercial forest insurance, insufficient role of risk compensation and lack of synergy in the operation mechanism of forest insurance. Therefore, the author puts forward three policy suggestions including innovating forest insurance products, optimizing the operation and management mechanisms, and implementing differentiated finance subsidy standards, expecting promote the balanced and sustainable development of forest insurance in Chengdu and provide reference for the policy optimization in China.