Review the history of the life insurance in the world,come first,followed by the social security system's deliberation and implementation.But the order of China's security system is:establish the national security system first,then implement the enterprise supplementary pension system,and develop commercial life insurance system in the end.On this phenomenon,this paper revealed the basis of life insurance system in the view of institutional economics,and gives economic interpretation to the situation that China's life insurance system is endogenous with China's economic transition and developing further.At the same time,in the framework of institutional analysis,this paper explained that China's life insurance business should get achievements and breakthrough from the system innovation.
