The FDS (Frequency-domain Dielectric Spectroscopy) of oil-immersed insulation paper, and semi-conductive paper with different moisture content, has been measured. The data measured are fitted as a function of frequency and moisture content using the amendatory Cole–Cole model utilizing the least square technique. Then, the broadband MTL model of the insulation system of IOCT (Inverted-type Oil-immersed Current Transformer) is established considering the capacitive electrodes thin layer, and the distribution parameters consider the moisture and frequency dependence. A new method for VFTO (Very Fast Transient Overvoltage) distribution calculation of insulation systems is proposed.