Abstract: An insurance theory based pricing method is proposed by proceeding from the idea of using the compensation fee from black-start ancillary service to power consumers to remunerate power grid corporation and power generation enterprises.First of all,the entities of black-start ancillary service insurance contract are defined and the insurance object conforming to the characteristics of system restoration is designed.Furthermore,the protocol time（PT）is proposed to be the insurance stipulation between policy-holder and insurer:once blackout occurred,the insurer should provide restored power to the policyholder within the PT,otherwise it will be considered a breach of contract.Then,the steps to calculate contract elements are elaborated.Finally,service pricing optimization is converted to solving the optimal PT:in the first step,according to the functional relation between PT and different contract elements,four kinds of ideal PT corresponding to the ideal crossing points between element curves are obtained,and the critical PT is deduced,jointly serving as the constraints on the service pricing optimization model;in the second step,minimizing the probabilistic yield gap between different contract entities is considered as the objective function,including the above constraints simultaneously,the optimal PT can be calculated,thus determining the corresponding service price.An actual power system based example analysis has demonstrated the detailed procedure and basic characteristics of the proposed method.