The new rural insurance policy is of great significance for improving China's social pension security system, alleviating social conflicts, and promoting social stability. This article provides a comprehensive review and research on the development process, policy effects, challenges, countermeasures, and prospects of the new rural insurance policy, based on existing literature and relevant data. Research has identified three distinct stages in the progression of the rural insurance initiative.: the exploration stage of local pilot projects, the stage of central unified policies and national pilot projects, and the stage of comprehensive promotion and institutional improvement. The policy effect mainly involves the impact on three levels: government credibility, family economy, and social and cultural concepts. At the same time, it has been found that there are still some problems with the implementation of the new rural insurance policy, such as insufficient publicity, legislative and authoritative power. Finally, based on existing literature, corresponding optimization paths and prospects are proposed to address the existing problems.
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