HM Treasury (HMT) is suggesting simplified financial products should be defined as sellable without advice.
The middle classes should pay the first £35,000 of their old age care and be encouraged to take out insurance to cover costs, according to reports.
Failure to act on the Dilnot Commission would be 'catastrophic', according to the ABI, Society for Later Life Advisers (SOLLA) and other bodies in the long term care (LTC) sector.
Jonathan Rees, director general of the Government Equalities Office, has reassured insurers there will not be a ban on age-based insurance pricing in the near future.
Zurich has amended its critical illness (CI) plans and produced a multi-media pack to help advisers promote the benefits of the product's cover.
Any new legislation implementing private sector involvement in supporting the welfare state will not happen until a potential second term, according to the ABI.
Vince Cable has admitted Britons will have to take greater responsibility for their own protection needs in the future following the welfare reforms.
The insurance industry still has an image problem with the general public which the new regulatory structure is unlikely to help, according to research by the ABI.
The protection industry should engage with the Money Advice Service (MAS) not fear it to successfully grow the market, industry leaders have said.
The government is "enthusiastic" and "engaged" with the protection industry to support its attempts to cut welfare spending, according to Richard Verdin.