Abstract: The contract system has always been pushed forward in the conflict between subjectivism and objectivism. Specifically, in the area of insurance contract, as an objective standard to distinguish insurance and gambling, insurance interest is always unable to avoid the subjectivity problem. More and more scholars called for the cancellation of insurance interest principle. Meanwhile, insurance purpose provides a better dimension revealing the essence of insurance contract and presents the function of objectivity. As the typical transaction purpose of contract, the purpose of loss compensation is to identify and measure loss in compensatory insurance, and present objective function: loss compensation is a typical transaction purpose of insurance contract, and it is an objective purpose to determine and measure the loss in insurance law in compensatory insurance; in life insurance, the consent of the insured is the subjective purpose which avoids the uncertainty of interest. In the process of the balance between subjectification and objectification of insurance contracts, “benefit” should be replaced by “loss” and the objective standard of insurance should be constructed; meanwhile, we should rationalize the external control system of regulators, insurance companies and courts to ensure the legality of insurance purpose.

Key words: insurance purpose, insurance interest, remedy of loss, the subjectivity and objectivity of insurance contract