Insurance giant considers merging corporate and claims panels amid adviser shake-up 

AIG is set to kick off a review of its external legal advisers across the Asia-Pacific region, as the insurance giant sizes up a potential merger of its corporate and claims panels.

The US-based company currently has a corporate panel including five to 10 law firms across several Asian countries, alongside a separate claims panel subdivided by jurisdiction and area of expertise.

The corporate panel covers 13 countries where AIG has operations in Asia – Hong Kong, China, Taiwan, Japan, Korea, Singapore, Indonesia, Malaysia, the Philippines, Vietnam, Thailand, Australia and New Zealand. AIG expects to finalise the process before the end of the year.

Asia-Pacific GC Pamela Yeo (pictured) said it had not yet been decided whether the company would appoint firms via a bidding process or continue to review firms the way it has previously, which has not involved a procurement-led tender.

"On average we have reviewed the panel every two years. If we find that we haven't used a particular law firm for the last two or three years, [then they will come off]."

Firms on the existing panel include Mayer Brown JSM for claims, DLA Piper for corporate and claims, Allens for claims in Australia and Watson Farley & Williams for claims in Thailand. 

AIG is regularly advised by US firms Debevoise & Plimpton and Weil Gotshal & Manges on big-ticket corporate work, while other firms understood to have advised the company in Asia in the past include Clifford Chance, Baker & McKenzie, Norton Rose Fulbright and Kennedys. 

Firms not on the current panel but expected to pitch for places on the new line-up include DAC Beachcroft, RPC and Clyde & Co.

"We're looking to see if we can use outside law firms in a more efficient manner," explained AIG Hong Kong GC Peter Gregoire. "In Hong Kong, one of the things that we would be looking at specifically on the claims panel is to explore different fee payment structures. This is particularly the case for employers' compensation claims work."

Yeo said AIG was particularly interested in law firms that could provide training for its directors on regulation, risk management and governance – described as a "big area" for the insurer. Gregoire added: "The main challenge we face is the continued changes in regulation, particularly on the insurance front."

Separately, AIG's review of its advisers across the EMEA region for corporate and claims work is expected to conclude shortly, with the company having considered the use of a reverse auction process in an attempt to lower legal fees.

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