Churchill will announce a new legal panel in the next two weeks, according to sources.
It is understood that four legal firms will be chosen from a beauty parade that began in February. It is understood four prime contenders are: DLA, Berrymans Lace Mawer, Keoghs and Lyons Davidson.
Churchill asked eight firms to submit ideas on how a future legal panel should work. Other than the four in contention, sources said Horwich Farrelly and Davies Lavery were also asked to tender ideas. This is part of the on-going strategic review of the group's activities.
This is part of the on-going strategic review of the group's activities and particularly the integration NIG and Avon Insurance. NIG acquired Avon at the end of October 2002.
A Churchill spokeswoman said: "We don't have a panel system at the moment. There is an on-going strategic review which does include the number of legal firms we use in the future."