Norwich Union (NU) has trimmed its personal injury legal panel from 10 to eight companies in response to the falling numbers of personal injury cases.
Morgan Cole in Reading and Crutes in Newcastle were the losers in the shake-up.
An NU spokeswoman said: "In common with other insurers, NU has seen a reduction in the frequency and volume of insured personal injury cases.
"As a result, NU has undertaken a review of its legal services provision for defendant work resulting from third party claims submitted to NU.
"The objective of the review was to put in place a legal panel that fits our requirements in terms of size, quality of service, performance, and total cost of claims handling."
The new panel will consist of: Hugh James in Cardiff; DLA in Sheffield; Keoghs in Bolton; BLM in Stockton; Ricksons in Preston; Beachcroft Wansbroughs in Birmingham; Greenwoods in London; and Cartwrights in Bristol.