Abstract: In recent years, the No. 1 Central Document proposed to deepen the development of agricultural insurance. Before further promoting agricultural insurance, it is significant to analyze whether agricultural insurance premium subsidy policy is effective in reducing agricultural market risks. The central government subsidized the first batch of crop insurance premiums, including rice, corn, wheat, soybean, and cotton. In this paper, we investigated whether the market risks of the five agricultural products have changed or not after implementing the insurance premium subsidy policies. Results show that the coefficients of the price variations of rice, corn, wheat, soybean, and cotton decreased significantly after the implementation of the agricultural insurance premium subsidy policy. The GARCH model confirms that the agricultural insurance premium subsidy policy reduces the volatility of six types of agricultural product prices, that is, the agricultural insurance premium subsidy policy alleviates the market risks of bulk agricultural products. The central government's policy of subsidizing agricultural insurance premiums is actually an indirect regulation of agricultural risks by market-oriented means. This study also finds that the crop insurance premium subsidy policy is effective and necessary to increase agricultural product categories, to improve and expand the policy to all provinces.