Counsel Assisting Mark Costello has put IAG's Ben Bessell under pressure over Swann's oversight of authorised representatives selling add-on products through motor dealerships.

Mr Bessell says the oversight process, which involved initial training and electronic questionnaires provided a "light touch" but agreed that the company could have been more proactive.

He agreed there had been a lack of face-to-face audits and that Swann could not be certain that ARs were following correct procedures in their dealings with customers.

Mr Costello suggests the company did not have adequate processes to ensure ARs were operating in line with financial services obligations.