Abstract: This paper constructs a theoretical model of the ecological industry system including the physical sector and the financial sector. Based on the relevant data of the national rural and insurance industry from 2004 to 2019, and using the principal component analysis method, this paper constructs a comprehensive evaluation index of the development of the ecological industry, and empirically studies the impact of the innovation of the use of life insurance funds on the development of the rural ecological industry through OLS regression. The research shows that policy guidance on the allocation of insurance funds in life insurance industry is conducive to improving the development level of ecological industry. The life insurance industry invests the balance of insurance funds in bank deposits, which can not only ensure the safety of funds, but also effectively promote the development of rural ecological industries through the bank's support for ecological industries. On the contrary, the life insurance industry allocates funds to bond investment, which is inefficient to promote the ecological industry and is not conducive to the development of the ecological industry. Therefore, it is necessary to strengthen the research on the fund balance allocation mode of the life insurance industry to help the development of the ecological industry, increase the investment scale of the life insurance industry funds in the ecological industry, enrich and improve its investment structure, implement precise services and precise compensation for the development of the ecological industry, and make contributions to the revitalization of the rural ecology, the construction of a beautiful ecological and livable village, and the promotion of agricultural and rural modernization.