Abstract: Whether the policy agricultural insurance can stabilize grain production,on the basis of combing the literature review,and using improved CobbDouglas production function to analyze,under the condition of traditional factors affect grain production,the policy agricultural insurance was introduced,combined the panel data of Inner Mongolia in 2007-2015,the relationship between agricultural insurance and grain production was verified with fixed effect model.The results showed that it has a positive influence on grain production on 10%level.