From a logical point of view, the supervision over the equity investment of insurance funds by the insurance regulatory authorities in mainland China shows a trend from strict to relaxed to strengthened. The use of insurance funds is also related to the interests of the vast number of insurers, so the setting of regulatory objectives should consider the protection of the interests of insurance consumers. According to the source of insurance funds, we will find whether the investment equity of insurance funds can participate in the operation of the company and whether the insurance funds can be used as merger and acquisition funds of listed companies and compete for the control rights of listed companies. The supervision of equity investment in insurance funds should take into account the publicity and sociality of insurance funds. By prudent supervision, we can realize the balance of investment income of insurance funds, protect the rights and interests of insurance consumers and public welfare.