The Claims Standards Council is to consult its members over the future of the body, after it was ruled out of becoming the claims regulator by the government this week.
The CSC said today that one of the options under consideration was it becoming a trade association.
"The government has indicated to us that it would like the experience and knowledge of the CSC's members to continue to play a significant role," it said in a statement today.
The CSC had been vying to become the statutory regulator of the claims managment company community under the Compensation Bill.
But an independent report commissioned by the Department for Constitutional Affairs made it clear that the task was too great for the CSC.
The government is still considering which body will be the regulator.
On 7 March, during the report stage of the Compensation Bill in the House of Lords, Baroness Ashton said: "I would encourage the CSC to consider options for continuing involvement, and to continue to contribute to identifying abuses, raising standards and helping to shape the implementation of the legislation.
"We need a strong trade body to provide that crucial representation for the claims management sector - a body that we can work with to ensure that regulation is applied effectively and sensibly. The CSC could [fulfil] that role, although it is up to the industry to decide."
The CSC said it intended to consult its members "over the next few weeks" before a formal decision was taken about its future.
