Mr Costello returns to suggest the commission could find Swann Insurance engaged in misconduct by continuing to sell add-on insurance even after it was aware of ASIC's concerns.

It also gave incentives to authorised representatives (ARs) to sell as many add-on policies as possible with no regard to the suitability of those products.

It also had no proper oversight of its ARs.

The commission is open to find that one of the reasons for this behaviour is Swann's culture of pursuing profit above the interests of its customers.

IAG failed to have proper oversight of its subsidiary Swann, Mr Costello said.