Zurich is reviewing its legal panels, with a view to consolidating them, according to an industry source.

The source told Insurance Times that Zurich used different panels for its personal, commercial, direct and municipal businesses.

A Zurich spokeswoman confirmed that its legal panels were under review.

"This review is designed to implement best practices and improve working efficiencies.

"It is not aimed at reducing the number of solicitors we work with," she said.

However, AXA was adamant it had no plans to reduce the number of firms on its panel, although rumours were rife that it had considered working with only one firm in the future.

A source said the AXA legal panel currently consisted of Beachcroft Wansbroughs, Morgan Cole, Kennedys and James Chapman & Co.

Zurich and AXA are two of the largest insurers in the UK.