Advisers are concerned service quality could suffer if Resolution succeeds in a takeover of AXA's annuity, protection and group pension business.
IFAs are reacting cautiously to news Resolution Group, which bought Friends Provident last year, is in talks over a £2.75bn deal to consolidate the AXA businesses with its Friends Provident operations.
Protection specialist IFA Peter Chadborn says he has mixed views about a deal which would lead to the creation of one of the UK's largest protection and group pension businesses.
"There is plenty of competition in the market so we can afford to lose some product providers. However, experience has taught us the larger the provider gets, the lower the quality of service becomes.
"Especially as Resolution has just taken over Friends Provident."
However, he says he expects more mergers and acquisitions as the RDR deadline nears.
"I'm not surprised to hear there are M&A talks. As we go towards the RDR we are going to see more of this."
Annuity IFA Billy Burrows says the deal could be a mixed bag for clients.
He says: "If you've got existing products with AXA, on the one hand a merger could lead to costs saving for the company which could be passed on to the client.
"But then you've got a lack of focus [with an enlarged company]."
Master Adviser senior partner Roy McLoughlin says uncertainty over the long-term consequences of the deal is a potential cause for oncern.
"The problem is you don't know what Resolution's end game is. If it is committed to the market, then fine."
"AXA's stock has risen to become one of the leading protection product providers in the UK in recent years. Provided Resolution is going to continue this, then we have nothing to worry about.
"But a cynic might suggest one of those two well-respected brands [Friends Provident and AXA] may disappear which would not be healthy for the protection industry in particular."
Managing director of Lowes Financial Management Ian Lowes says the proposed acquisition could increase the protection gap and detrimentally impact the economy.
"I do not think this is good for the general public and the UK economy because the less providers we have marketing and promoting products to IFAs the less likely it is people will take out protection policies," he says.
"Life insurance policies are not bought, they are sold so the protection gap will increase. And this could increase the demands on the state support system because the cost of providing support for widows and orphans without life insurance will land on the state."
