Abstract: As a financial instrument to deal with environmental risk and promote environment protection, green insurance in China is facing the difficulty of low willingness to pay. Combining theoretical model and case study, this paper explores the factors impacting the willingness to pay green insurance based on the behaviors of the microeconomic individuals. Firstly, the utility theory is used to analyze the impact of policy-holders'behavior and the insurance products'design on the willingness to pay for it, and the factors impacting the willingness to pay the green insurance are proposed theoretically. Secondly, the results from above theoretical analysis are verified based on the successful cases of promoting the green insurance in the Wuxi City of Jiangsu Province, and the suggestions on promoting the development of green insurance in China are offered. The study shows that reducing the insurance cost, establishing the scientific and reasonable pricing mechanism, and correcting the market failure by government while running green insurance are the vital measures to increase the enterprises'willingness to pay for the green insurance.