Based on survey of living conditions of insurance salesmen in Hubei province,this paper concludes that there are such problems as overall poor quality,poor stability,welfare loss and lack of competitiveness for insurance salesmen.This paper also analyzes the reasons leading to the above problems from the aspects of legal status of insurance salesmen,industrial competition and incentive mechanism.Therefore,this paper puts forward some suggestions on how to reform insurance agency system,including confirming legal identity of insurance salesmen,changing management idea and strengthening the supervision of insurance education.