Advisers, providers and elderly charities welcomed the Dilnot report, but urged the government not to kick the recommendations into the long grass.
The report recommended a cap on care fees of £35,000 and a separate cap of between £7,000 and £10,000 on accommodation and food costs.
The commission into long term care (LTC) funding also recommended an asset threshold of £100,000 (currently £23,250) below which individuals should not have to pay for care.
Liz Faye, LTC specialist at Palm Financial Planning (pictured), said: "LTC is a growth area for advisers, especially in the light of the retail distribution review (RDR).
"We are crying out for insurers to create more LTC products and competition; the more products the better."
Jason Witcombe, director at Evolve Financial Planning, said: "It would be great if a viable and competitive pre-funded care market were to re-emerge as this is a big gap in the market."
Ian Atkinson, LTC specialist at Retirement Solutions, said: "If the recommendations are adopted, insurers will all flock back in to pre-funded products as the risk will no longer be a moveable feast.
"We could see all types of products, such as regular premium products or single premium products paid for out of the tax free lump sum from pensions at retirement."
Dominic Grinstead, director of MetLife UK said: "The issue of funding LTC requires new solutions and this proposal could provide considerable help to people with reasonable-sized pension savings.
"The OECD estimates the UK will have to find an extra £50 billion a year to fund care and that clearly cannot come from the Government alone. Accessing pension funds will free considerable amounts which can be used to tackle a major issue while allowing people to keep their homes."
Vince Smith-Hughes, business development manager at Prudential, said:
"Increased life expectancy means a greater number of elderly people with greater care needs.
"Meeting the challenges of an ageing population means a partnership approach between private provision and the state. Looking at the ways in which care services can be developed to alleviate this pressure is a welcome response."
Stephen Lowe, external affairs director at Just Retirement said; "The proposals will provide opportunities for companies to develop innovative insurance-based solutions to help advisers and customers prepare for their care needs in the future."
Michelle Mitchell, Charity Director at Age UK, said: "Everyone will benefit if the anticipated Dilnot recommendations are adopted.
"The government must announce a white paper by spring at the very latest, which includes funding proposals and a clear commitment that legislation will follow."
