This paper discusses on the developing opportunities brought about b y WTO entry to Chinese insurance business from aspects of improving the operatio n environment, activating the insurance market, promoting the mechanism transfor mation, and accelerating the leaning of the advanced experiences, etc.

After the entry into the WTO,the trade bodies in the Chinese insurance market will increase rapidly and the competition among them will become keener.

Based on all the reached agreements that china wants to join WTO and the status quo of Chinese insurance, this paper analyes the chances and challenges in running, management, market competition and talents that chinese insurance is faced with when joining WTO, and presents corresponding countermeasures.

The enlightenments of American insurance industry exploiting financial derivative instruments in the past and at present for China s insurance industry are rich in many respects.