On April 17th, 2020, Government of India has reviewed the extant Foreign Direct Investment policy for curbing opportunistic acquisitions due to the COVID-19 pandemic shows that overseas investment may face some uncertain political risks. As a natural barrier against risks, the insurance system should play an important role in protecting investors and financial institutions from economic losses. Compared with the following developed countries’ models, the United States, Japan and German, the history and status quo of overseas investment insurance system are first discussed, and second the necessity of development. Then system’s deficiencies are basically analyzed from four aspects, namely insurance model, insurance coverage, single assurer and construction of specific legal rules. Lastly some relevant proposes of system construction are made respectively.