diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5af80680b26..97869c80d5b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -15,6 +15,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
   ([#2781](https://github.com/open-telemetry/opentelemetry-python/pull/2781))
 - Fix tracing decorator with late configuration
   ([#2754](https://github.com/open-telemetry/opentelemetry-python/pull/2754))
+- Fix --insecure of CLI argument
+  ([#2696](https://github.com/open-telemetry/opentelemetry-python/pull/2696))
 
 ## [1.12.0rc2-0.32b0](https://github.com/open-telemetry/opentelemetry-python/releases/tag/v1.12.0rc2) - 2022-07-04
 
diff --git a/exporter/opentelemetry-exporter-jaeger-proto-grpc/src/opentelemetry/exporter/jaeger/proto/grpc/__init__.py b/exporter/opentelemetry-exporter-jaeger-proto-grpc/src/opentelemetry/exporter/jaeger/proto/grpc/__init__.py
index ab751b0fb93..f738ae336ce 100644
--- a/exporter/opentelemetry-exporter-jaeger-proto-grpc/src/opentelemetry/exporter/jaeger/proto/grpc/__init__.py
+++ b/exporter/opentelemetry-exporter-jaeger-proto-grpc/src/opentelemetry/exporter/jaeger/proto/grpc/__init__.py
@@ -87,6 +87,7 @@
 from opentelemetry.sdk.environment_variables import (
     OTEL_EXPORTER_JAEGER_ENDPOINT,
     OTEL_EXPORTER_JAEGER_TIMEOUT,
+    OTEL_EXPORTER_JAEGER_GRPC_INSECURE,
 )
 from opentelemetry.sdk.resources import SERVICE_NAME, Resource
 from opentelemetry.sdk.trace.export import SpanExporter, SpanExportResult
@@ -122,11 +123,17 @@ def __init__(
         self.collector_endpoint = collector_endpoint or environ.get(
             OTEL_EXPORTER_JAEGER_ENDPOINT, DEFAULT_GRPC_COLLECTOR_ENDPOINT
         )
+        self.insecure = (
+            insecure
+            or environ.get(OTEL_EXPORTER_JAEGER_GRPC_INSECURE, "")
+            .strip()
+            .lower()
+            == "true"
+        )
         self._timeout = timeout or int(
             environ.get(OTEL_EXPORTER_JAEGER_TIMEOUT, DEFAULT_EXPORT_TIMEOUT)
         )
         self._grpc_client = None
-        self.insecure = insecure
         self.credentials = util._get_credentials(credentials)
         tracer_provider = trace.get_tracer_provider()
         self.service_name = (
diff --git a/exporter/opentelemetry-exporter-jaeger-proto-grpc/tests/test_jaeger_exporter_protobuf.py b/exporter/opentelemetry-exporter-jaeger-proto-grpc/tests/test_jaeger_exporter_protobuf.py
index 6cc44195265..a886a43c527 100644
--- a/exporter/opentelemetry-exporter-jaeger-proto-grpc/tests/test_jaeger_exporter_protobuf.py
+++ b/exporter/opentelemetry-exporter-jaeger-proto-grpc/tests/test_jaeger_exporter_protobuf.py
@@ -35,6 +35,7 @@
 from opentelemetry.sdk.environment_variables import (
     OTEL_EXPORTER_JAEGER_CERTIFICATE,
     OTEL_EXPORTER_JAEGER_ENDPOINT,
+    OTEL_EXPORTER_JAEGER_GRPC_INSECURE,
     OTEL_EXPORTER_JAEGER_TIMEOUT,
     OTEL_RESOURCE_ATTRIBUTES,
 )
@@ -87,6 +88,7 @@ def test_constructor_by_environment_variables(self):
                 + "/certs/cred.cert",
                 OTEL_RESOURCE_ATTRIBUTES: "service.name=my-opentelemetry-jaeger",
                 OTEL_EXPORTER_JAEGER_TIMEOUT: "5",
+                OTEL_EXPORTER_JAEGER_GRPC_INSECURE: "False",
             },
         )
 
@@ -99,6 +101,7 @@ def test_constructor_by_environment_variables(self):
         self.assertEqual(exporter.collector_endpoint, collector_endpoint)
         self.assertEqual(exporter._timeout, 5)
         self.assertIsNotNone(exporter.credentials)
+        self.assertEqual(exporter.insecure, False)
         env_patch.stop()
 
     # pylint: disable=too-many-locals,too-many-statements
diff --git a/opentelemetry-sdk/src/opentelemetry/sdk/environment_variables.py b/opentelemetry-sdk/src/opentelemetry/sdk/environment_variables.py
index be105c3fbb8..4a62fe41c2b 100644
--- a/opentelemetry-sdk/src/opentelemetry/sdk/environment_variables.py
+++ b/opentelemetry-sdk/src/opentelemetry/sdk/environment_variables.py
@@ -435,3 +435,10 @@
 ``DELTA``: Choose ``DELTA`` aggregation temporality for ``Counter``, ``Asynchronous Counter`` and ``Histogram``.
 Choose ``CUMULATIVE`` aggregation temporality for ``UpDownCounter`` and ``Asynchronous UpDownCounter``.
 """
+
+OTEL_EXPORTER_JAEGER_GRPC_INSECURE = "OTEL_EXPORTER_JAEGER_GRPC_INSECURE"
+"""
+.. envvar:: OTEL_EXPORTER_JAEGER_GRPC_INSECURE
+
+The :envvar:`OTEL_EXPORTER_JAEGER_GRPC_INSECURE` is a boolean flag to True if collector has no encryption or authentication.
+"""