After the reform and opening up, with the development of society and economy, Chinese insurance industry has developed rapidly, but in the development of the back also exists a lot of problems. The insurance market is a typical market with asymmetric information, information asymmetry induced by the adverse selection and moral risk widely exists. In the current increasingly complicated economic environment, these problems greatly hindered the healthy development of insurance market. In this paper, based on the theory of information asymmetry, gives the definition of the applicant and the insurer both adverse selection and moral risk, and the insured, the insurer from dominant cases were carried out on the adverse selection and moral hazard analysis, finally in the theory analysis based on the combination of the insurance market of our country the actual situation from the perspective of system construction put forward to solve the asymmetric information in insurance market strategy and suggestion.