As an effective mechanism for decentralizing and transferring agricultural risks,agricultural insurance is an important driving force for ensuring stable production of agriculture and upgrading the total factor productivity of rural areas.This study selects the panel data of 30 provinces (municipalities,autonomous regions) in China from 2010 to 2016,and uses the Malmquist index to calculate the total factor productivity level of rural China.Further more,a spatial econometric model is used to empirically analyze the impact of agricultural insurance development on rural total factor productivity and its spatial spillover effect.The result shows that the total factor productivity in the rural area is not a random distribution,but a positive spatial relationship.Agricultural insurance development has a significant positive impact and spatial spillover effect on rural total factor productivity.After examining different forms of spatial models and weights,this result is still robust.Therefore,improving the development level of agricultural insurance and continuously strengthening inter-regional agricultural cooperation are important policy choices for improving the total factor productivity of rural areas.