Home loan writer Mortgage Choice says life insurance could become more expensive if the recommendations of the Trowbridge report are enacted.
The report, by former banking regulator John Trowbridge, recommends adviser commissions for life insurance be capped in order to stamp out unethical practices by financial advisers.
The move is designed to discourage advisers to get clients to change policies so they can receive more commission.
Mortgage Choice Financial Planning's general manager Tania Milnes said a cap would force advisers to charge a fee for advice in order to remain commercially viable, but there would be no corresponding reduction in premiums.
"If Trowbridge's remuneration recommendation is ratified, it may stop certain Australians, particularly the wealth accumulators, from accessing quality financial advice," she said.
"As a result, fewer Australians would be able to access affordable insurance-related financial advice."
The financial advice sector has been rocked by scandals in recent years with revelations advisers have pocketed high commissions for putting clients' funds in high-risk products without their knowledge or consent.
Ms Milnes is worried that the proposed changes might drive some financial advisers out of the industry because they would be making less money.
She said that those who did stay in the financial planning industry might be forced to focus on clients with more complex needs, who have a greater capacity to pay fees.
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