The ABI has broadly welcomed the FSA's draft rules on insurance regulation in Consultation Paper 187.
The ABI said it was encouraged that private medical insurance and income protection insurance would not be classified as higher risk products.
ABI head of general insurance, John Parker, said: "The FSA has taken a sensible and flexible approach to implementing the Insurance Mediation Directive.
"These draft rules build on the good practice already widespread in the general insurance market, including the ABI's codes of practice and the rules of the General Insurance Standards Council (GISC).
"We will be considering carefully the detail of these draft rules during the consultation period."
