The FSA said it may look at ways to improve the standard of advice for products that meet care fees funding needs.
It said these products can be complex and consumers "may need additional protection".
It follows the publication today of economist Andrew Dilnot's broad recommendation that social care costs should be capped.
His proposals suggested there may be fresh interest from providers in developing pre-funded insurance products.
In a letter to Dilnot dated 1 July, Margaret Cole, managing director of the FSA's conduct business unit, pledged to closely monitor the possible creation of new long term care (LTC) products, and the advice given on them.
"We are keen to continue working with the government, the financial services industry and third parties to help ensure the development of products that are in the best interests of consumers," Cole wrote.
"We will be active in supervising the development of new products, especially in light of previous problems with pre-funded LTC insurance.
"Indeed, under our consumer protection strategy, we intend to increase our focus on product design and governance more generally, to try to avoid customer detriment.
"We are also happy to be involved in working groups to consider improvements to the standards of advice for products that meet care fees funding needs. Such products can be complex and consumers may need additional protection."
Today the Dilnot Commission recommended the government set a £35,000 cap on care fees and an asset threshold of £100,000 below which individuals do not pay for care.
There are currently no pre-funded LTC products due to insurers' inability to underwrite the associated risks.
However, with a cap on care fees, insurers would be able to underwrite LTC products, prompting speculation if the government takes up Dilnot's recommendations, insurers will pile into the pre-funded market.
No preferred charging model
To 1,552 families and businesses
HL and Liberty SIPP slowest
Lifetime and annual allowances