Any new legislation implementing private sector involvement in supporting the welfare state will not happen until a potential second term, according to the ABI.
The body also revealed the Dilnot Commission examining the funding of long-term care (LTC) will include involvement for private provision but accused the government of being uncoordinated towards simple advice and products.
Speaking at the Protection Review, Otto Thoresen, director general of the ABI, explained the coalition had been positive about the possibility of private sector involvement but certain policies were not operating hand-in-hand.
"I don't believe the simple products and simple advice debate is joined up in government," he said.
"Somewhere in the tangled mix is an idea that can help people take control of their finances and I have been very encouraged with government willingness to include us as part of the solution.
"However that policy will have to wait until early in the second term for this government," he added.
Thoresen also noted that the life industry's poor engagement with existing customers was a black mark against it where the government was concerned.
This, he explained, was in contrast to much of the general insurance sector such as motor insurers, who were keen to communicate with MPs and customers.
And referring to the upcoming results of the Dilnot Review, Thoresen added: "The report will create new potential for the industry and we're working to provide detailed models for end of the year."
His remarks were supported by Nick Kirwan, assistant director of health and protection at the ABI, who explained more detail of what is predicted to be involved in the proposals which included a personal £50,000 limit and LTC riders for life and critical illness (CI).
"It's been mooted that people will take on the first £50,000 of risk themselves and then the government will cover anything above that," he said.
"However, all the people due to go into care in the next 20 to 25 years are already retired and so they've done all the saving they can.
"We may see the ability to put LTC riders on CI and life policies, but will people do these things if they are just voluntary?
"Probably not. There needs to be some sort of nudge but it depends upon how much the government is willing to help," he added.
