This article analyzes the development dilemma of China's agricultural insurance from the perspective of game equilibrium and puts forward corresponding countermeasures and suggestions. The article points out that government subsidies, risk control, and the improvement of the legal system are key factors to improve the efficiency of the agricultural insurance market, protect farmers' interests, and promote sustainable agricultural development.Through model construction and empirical analysis, the article provides theoretical basis and policy suggestions for the innovation of the financial subsidy system for agricultural insurance and the risk control mechanism.