Food security is a vital foundation of national security in China and a bottom-line requirement for advancing China’s path to modernization. This article constructs an evaluation index system for food production security, uses provincial panel data, and employs multiple research methods to conduct in-depth analysis of the impact of policy-based agricultural insurance on food security from various dimensions. The research results show that policy-based agricultural insurance has a significant positive impact on food security, and its mechanism of action is mainly achieved through loss compensation and risk dispersion, promoting agricultural technological innovation, and enhancing the credibility of the entire industrial chain financing. Based on this conclusion, this paper proposes policy recommendations to promote the transformation and upgrading of agricultural insurance, improve multi-level agricultural insurance mechanisms, perfect the mechanism for dispersing agricultural catastrophe risks, and empower farmers' financing credibility with technology, so as to better serve the food security strategy.