AIG to announce cost-cutting panel line-up within weeks

Insurance giant AIG is to reveal its new legal panel next month following a review of its Emea advisers.

The insurance giant kicked off a revamp of its regional roster earlier this year (14 March 2013) and is expected to reduce the number of firms appointed as well as change its structure. 

Insiders say the new panel is expected to be announced within a month. Current panel members include DAC Beachcroft, Clyde & Co, CMS Cameron McKenna, Freshfields Bruckhaus Deringer, Kennedys and Norton Rose Fulbright.

It is understood that both Clydes and Parabis are among the firms that have pitched for panel places.

The Lawyer reported in 2011 that AIG was planning to introduce a panel in Europe, where its business was known at the time as Chartis (24 October 2011). It returned to the AIG brand last year.

The latest review is connected to the fact that AIG merged its European and UK businesses in December last year, transforming it into more of a Continent-wide operation. The review is being led by Emea general counsel Chris Newby.

The procurement style has seen the company issue the tender request bids from firms at a decreasing fee level in a bid to push down prices by encouraging undercutting.

The decision is likely to be related to the increased costs of using the road traffic accident (RTA) claims portal. The Ministry of Justice has introduced fixed costs of £800 for all RTA claims worth between £10,000 and £25,000, as well as between £900 and £1,600 for employer and public liability claims (14 March 2013).