The government has been called upon to create a single body that has responsibility for long-term monitoring of the home insulation market.
A report by the Office for Fair Trading (OFT) revealed more needs to be done to protect consumers from rogue traders.
The body carried out research into the sector after receiving a high number of complaints about the standard of workmanship and use of inappropriate materials.
OFT director of services, infrastructure and public markets Nisha Arora said: "The home insulation sector is now worth some £700 million and it is important that people receive good quality, well-installed insulation that makes their homes more energy efficient."
The report also suggested there needs to be more competition in the market, with the OFT recommending the certification processes is improved.
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