Purpose – new challenges, including those induced by the Covid-19 pandemic and digital power, are exac-erbating instability for each entity and increasing the role of insurance, while necessitating the reformatting of existing approaches to insurance distribution. The purpose of the article is to develop a model of adaptation of the insurance distribution system to new challenges by elucidating the distribution channels transformation during the last decade in European countries, establishing causal links, identifying factors that determine current trends in insurance distribution.

Research methodology – the economic and statistical methods of collecting and processing the information, methods of structural and dynamic analysis, analysis and synthesis, empirical methods are usedto achieve the stated goal of the article.

Findings – a model for adapting the insurance distribution to new challenges, including the Covid-19 pandemic and digital power, which is based on the current trends and transformation processes of insurance distribution in European countries, the features of the insurance distribution system, aimed at innovation and the establishment of insurance ecosystemsis developed.

Research limitations – limitations of the study are represented by the gaps in available statistical information for indi-vidual countries.

Practical implications – the results of the study, including the proposed model, can help insurance companies achieving the sustainable development goals, taking into account new challenges.

Originality/Value – this study delivers its contribution by demonstrating the trends, drivers and ways to adapt the in-surance distribution in the new realities.

DOI: https://doi.org/10.3846/cibmee.2021.602