China has vast territory.Because of some historical and geographical factors,the distribution of regional economy in China presents obviously uneven as the dual economic structure.The regional insurance industry and its resource allocation have also shown a huge difference.Overall,the insurance industry has a better level of development in the eastern and central regions while in the western regions it started late and has a low level of development.As the regional insurance markets present large gap on primary premium,the number of insurance corporations and intermediaries,demand population and insurance environment,the distribution of these insurance industry resources is unbalanced for being intensively allocated in east China.In this paper,the factors that affect the resources allocation are analyzed.The population,education,income and polies are major issues that restrict the transformation from the potential purchasing power to a real one.By illustration,the paper reckons that when education,talents,policies resources have been allocated to west China,the insurance industry would be stimulated sharply within the economy development.