The Advertising Standards Authority is launching an investigation after receiving 12 complaints from people who were turned down by Swiftcover because they worked in the music and entertainment industries.
Iggy Pop prances around topless in the £25m Swiftcover ads, created by MWO, and boasts: "I got it Swiftcovered. I got insurance on my insurance. Do it. Get a life. Get Swiftcovered."
Swiftcover said that it chose Iggy, whose hits include 'Lust for Life', for its advertising as an actor who "loves life" rather than as a musician.
Tim Soong, who plays bass for a band called Roguetune, was refused cover and when he asked about Iggy Pop he was told that his case was different because he is American.
Tina Shortle, head of marketing for Swiftcover, said: "Insurance premiums are based on a number of different data, including the historic claims costs for specific occupations.
"This means that we do not provide cover to some professions that, according to that data, have a higher level of claim costs."
Other insurers have been accused for having misleading ads, including Esure, with ads fronted by Michael Winner, which does not insure film directors, and Sheila's Wheels, which does not cover the pink Cadillac it uses in its ads.