The IIB has joined Biba in expressing alarm at the FSA's proposed changes to the insurance conduct of business rules (ICOB).
The body said it feared the changes, as contained in the FSA's consultation paper CP05/14, would deprive consumers of vital information when dealing directly with insurers.
The proposals include abolishing status disclosure for insurers dealing directly with retail customers and the requirement for a demands and needs statement in respect of non-advised sales - which are virtually all in the ‘deal direct sector'.
IIB director general Andrew Paddick said: "This entire subject needs a sensible review."
The IIB said it would be making a "very robust" formal response to the consultation paper.