Abstract: In the forest insurance market, there is a dual cold situation of insufficient effective demand, weak innovation supply and low enthusiasm of local governments to participate, and the financial subsidy policy is inefficient. The basic reason is the lack of independent forest insurance system to adapt to its particularity as a guarantee, which makes the existing operation mechanism uncoordinated, the product system unscientific, the subsidy mechanism unreasonable, and resulting in the slow development of the market. Therefore, based on the analysis of the attribute characteristics of forestry risk and production, it is determined that the attribute orientation of forest insurance in China should be commercial forest insurance supported by the government, on this basis, the corresponding operation mechanism should be established around the operation mode, product system and financial subsidy system, so as to build an independent and comprehensive forest insurance system and operation mechanism, thus to improve the deadlock between supply and demand in the cold market, ensure the effective play of financial subsidy policies, and promote forest insurance develops healthily and continuously.

Key words: forest insurance, target orientation, development dilemma, institutional system