The Association of British Insurers (ABI) and Financial Services Authority (FSA) have welcomed today's Sandler Report.
Director General of the ABI Mary Francis said: "The Sandler report can help deliver confidence for consumers and stability for the industry."
"Many of Ron Sandler's ideas reflect best practice and new thinking in the savings industry. We particularly welcome his support for simpler products and less red tape.
"The Sandler review confirms that the industry has made real progress in recent years, for instance through the Raising Standards quality mark scheme.
"The proposals for greater clarity about the way with-profits products work include many of the ABI's own ideas.
"We will be working closely with the government and the FSA to see these changes through.
"The significance of today is that we should be able to move forward with confidence. With Alan Pickering due also to report on Thursday, we are coming to the end of the period of reviews. Now we need real action to help close the UK's £27bn savings gap."
FSA chairman Howard Davies said: "The suggestion of a simplified regulatory regime to cover the sale of `stakeholder products' is in line with the ideas put forward in the FSA's recent Consultation Paper on depolarisation.
"Regulation of the sales process to protect consumers must not become so stringent that it deters potential savers, and we look forward to supporting government work on the design of products in a `stakeholder' range."
The FSA said that, jointly with the Treasury, it will consider how best to act on the Sandler recommendations in September.
