Agricultural green development is a key path to realize sustainable agricultural development, while agricultural insurance, as an important risk management tool, has a potential role in promoting the level of agricultural green development. This paper takes agricultural insurance as an entry point to explore its influence mechanism on the level of agricultural green development. It is found that agricultural insurance directly promotes the enhancement of the level of green development of agriculture by reducing the pre-farming risk prevention, mid-risk control and post-risk compensation. Agricultural insurance can enhance the level of green development of agriculture by expanding the scale of agricultural operation, agricultural insurance promotes the scale of agricultural production, which in turn improves the efficiency of agricultural production, reduces the waste of resources and environmental pollution, and promotes the green development of agriculture. At the same time, environmental regulation plays a regulatory role in the relationship between agricultural insurance and large-scale operation. Under the strict environmental regulation policy, the protection function of agricultural insurance can better guide the agricultural production and management main body to expand the scale of operation and adopt green production technology, reduce the negative impact on the environment, to more effectively promote the green development of agriculture.