Law firms must improve their international focus if they are to earn a position on London market insurers' panels, as claims bosses plan reviews of their legal partners, reports Legal Week sister title Post.

One-third of London market firms are likely to review their legal panel over the next 12 months, according to the survey by Gracechurch Consulting, which canvassed claims professionals at 40 London market firms including Hiscox, Zurich, QBE, RSA, Catlin and Markel.

Clyde & Co topped the poll as the law firm that offers the best global coverage for insurers intent on expanding in emerging markets, and was ranked among the firms most likely to be shortlisted for a panel spot, alongside Kennedys, RPC and DAC Beachcroft.

Almost 100 firms were mentioned by respondents who named up to three firms they would include in a shortlist for claims work, with 66% of the firms named coming outside the top 15.

The fragmented nature of the results has led to suggestions smaller firms must place international insurance "at their heart" to keep pace with larger competitors.

Ben Bolton, Gracechurch chief executive, told Legal Week sister title Post: "Clyde & Co covers more lines than other firms and, crucially, is probably more international than most other players, so in terms of pure coverage it touches all the bases.

"After the big four firms there is a major drop-off in the results, and it appears to be a surprisingly fragmented marketplace. Given the international nature of the insurance market, it is somewhat puzzling that an international focus isn't prevalent at more law firms."

He added: "Compared with the corporate M&A market, which is dominated by global magic circle firms and in which clients don't have any problem accessing multi-jurisdictional support, it does not stand up."

Clydes senior partner Michael Payton (pictured) said the result shows the effect of both the global expansion among a few law firms and consolidation. He told Post: "Our merger with Barlow Lyde & Gilbert [in October 2011] was a major step and so it is good to have this endorsement for the strategy of combining specialities with geographic spread in what we offer insurers round the world."

DAC Beachcroft has also been focusing on extending its international reach, having recently launched an association in Colombia to sit alongside its existing Latin American presence in Mexico, Brazil and Chile.

Commenting on the results of the survey, which showed that 19% of claims bosses would shortlist his firm DAC Beachcroft head of insurance David Pollitt said the "big four's stranglehold" is likely to tighten as consolidation continues.

He added: "It is interesting that the big four are pulling away. Other firms are falling behind because they haven't put insurance at the heart of what they do. I was somewhat surprised by the popularity of much smaller firms, but I would suggest this statistic won't stand for long."

Noting his firm's hire of offshore marine energy specialist Anthony Menzies from Taylor Wessing in quarter four 2012, Pollitt said: "He joined us because he recognised it is all about panels and the individual approach is becoming harder. We provide the individual with the platform to push on. If this survey takes place in two or three years' time, that 66% won't be there."