The Advertising Standards Authority (ASA) said the ad implied the veteran singer had a policy, but Swiftcover did not cover musicians at the time. It ruled the advert must not be shown again in its current form following complaints from 12 viewers.
Swiftcover has since started to offer policies to musicians, while Iggy Pop will continue to endorse the company.
In the advert, Iggy Pop is seen exclaiming that he has insurance cover with the organisation, which the ASA ruled would lead "some viewers to believe the policy covered those who worked in entertainment, when it did not". The ASA also stated that Iggy Pop did not hold a policy with the company.
Swiftcover said that it had chosen the rock star for the campaign, not because of his profession, but for his reputation for a fast-living lifestyle.
The company said that it had now become one of the few insurers to offer policies to performers in the music industry.
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