The ABI has revealed it is opposed to a public compulsion to pay for future long-term care (LTC) needs.
Such a move would be expensive to implement and create many other social and practical issues, according to the Association.
The Dilnot Commission into funding for long-term care is due to announce its findings in the summer, with a hybrid public-private financed solution expected to be featured.
Nick Kirwan, assistant director of health and protection, spoke to COVER at the Partnership Care Solutions conference following a discussion that divided speakers and delegates.
Some suggested compulsion was necessary to ensure people faced up to the reality of the situation which they would otherwise avoid until a crisis moment, while others raised the problems of how those on lower incomes or already retired would be able to afford it.
Kirwan said: "The ABI is against compulsory insurance in general.
"It would need a whole new infrastructure to collect and manage the income which would be very expensive, and how do you deal with those who don't pay?
"Motor insurance is compulsory and yet some people do not buy it. So what should we do if someone doesn't contribute to long-term care?"
Kirwan also highlighted the dilemma the Dilnot Commission will face that, despite its likely goal to create a system for the long-term, even those 20 years away from entering care at present are likely to be retired already.
"People who are going to be entering care in the next 20 years (at about age 85) will have already retired, and so cannot add any new money into the system themselves.
"For people not yet retired we recommend they build their savings up to deal with that if it comes along," he added.
Kirwan echoed Ian Owen, chair of the ABI group on long-term care and also of Partnership, who had previously addressed the conference.
Owen explained the dearth of pre-funded long-term care insurance products and the difficulties faced by insurers to provide these.
"It is impossible for insurers to price a contract to meet the needs of the working generation," he said.
"Savings is the answer, save for the future. This doesn't mean the insurance industry can't price catastrophic risks, but assessing the care needs for my sons in their 20s is not practicable," he added.
Earlier, Lord Lipsey, president of the Society of Later Life Advisers, praised those involved with the Dilnot Commission and recent political progress made.
"The Dilnot Commission is going to be a great voice for reason," he said.
"This policy has to last 30 or 40 years and there is consensus that there has to be a partnership. We are moving towards a system which maybe workable sustainable and attract political consensus.
"I think rather good progress has been made since 1999 and I can't tell you how controversial my report was then to say we need private sector involvement. There's now a universal move that we must have political consensus," he added.
