Abstract: With rapid growth of the national economy, China's insurance industry has also made great achievement. However, the unbalanced regional development becomes more and more conspicuous for insurance industry, which extremely restricts the function and the role insurance should play. This paper will introduce the Theil index to analyze the regional differences in number and efficiency aspect for the development of China's insurance industry. Overall, the differences in regional development of China's insurance industry lie mainly in: developmental differences within the region, the overall declining trend in regional numerical differences, and the complex trend in regional efficiency differences. The developmental differences in central-east-west major economic regions also vary slightly. The essay gives, accordingly, three countermeasures: change the running mode and develop intensive management in the east, turn the potential resource advantages into real growth advantages in the central area, and vigorously develop economy and strengthen policy guidance for the development of the insurance industry in the west.