The Chartered Insurance Institute (CII) has called on the FSA to regulate warranty and travel insurance.
The call, in response to the Treasury's Mediation consultation paper, came amid fears that millions of customers are paying too much or being "miss-sold" insurance.
The CII has voiced concerns previously that there is little competition in both markets.
CII director general Dr Sandy Scott said: "There is a need for the consumer to be able to trust the person they are dealing with. That will only happen if those advisers understand the products they are selling."
The CII called for all advisers to be trained to a "level that is relevant to the advice they are giving".
A statement said: "By introducing such badging the general public would clearly be able to understand who they were dealing with."
