In this paper,real estate regulation function is constructed to analyze its benefit in two aspects: the allocation efficiency of the real estate industry resources and social welfare so that the effective regulation zone is established.

And the main factors that hinder the realization of effective supervision are:absence of effective supervision,unreasonableness of supervision system and imperfection of lawsystem.

This paper first briefly reviews the main contents of effective supervision regulations of old age.

The paper proposes that"effective regulation"is the inevitable choice for China insurance regulator to further im- prove its function after a review of the operational features of China s insurance market and the actual work and trend of in- surance regulation.

Based on international experience and lessons and the realities of China s financial modernization, China should continuously strengthen effective financial supervision through various measures such as establishing a risk-based supervisory idea, constructing financial supervision organization system accordi.