Financial supervision department has loosened restrictions on insurance company’s holdings on capital market, aiming to give full play to the insurance funds which typically have the strengths of large scale, long investment horizon and stable supply. Nevertheless, some insurance companies carry out unfriendly behaviors through capital superiority, which may cause volatility of stock prices. Based on this, the paper mainly studies the insurance funds and volatility spillover of individual stocks as well as the entire capital market. This paper uses a framework of econometric methods based on vector autoregressive mode, and selects the 2016—2020 quarterly data from the SSE A-share disclosure. The results reveal that on one hand, price fluctuation has a unidirectional spillover effect on insurance companies’ changes in ownership. On the other hand, insurance companies’ changes in ownership also have a unidirectional spillover effect on volatility of the SSE index. / Business Administration/Finance