This chapter details the use of insurance distribution systems in practice, highlights the theoretical support for the presence of various distribution systems within the insurance marketplace, and discusses public policy and regulatory issues related to insurance distribution. Three important economic issues form the centerpiece of the discussion. The first is the economic rationale for the choice of distribution system and the variety of distribution systems observed in the industry. The second is the nature of insurer-agent relationships and the role and consequences of alternative compensation methods for intermediaries. The third is the economics of regulatory oversight of insurance distribution. Both the US and international contexts are considered.