Abstract: From the insurance ins titutions to the operation proces s of insurance busines s and to the operation and mana gement of insurance funds, insurance companies of various countries are all carrying out reforms. Insurance innovation of an insurance enterprise is a concrete employment of scienti fic and technological knowledge, which needs the guidance of financial engineering theory. Confronted with the chal lenges of growing competions and financial risk, insurance companies should take al l measures to widen thei r innovat ions.

Key words: innovation, financial engineering, varieties insurances, financial tool