“The combination of ACE and Chubb will create a global leader in commercial and personal property and casualty (P&C) insurance with enhanced growth and earning power,” according to an ACE news release.
ACE shareholders approved the $28.3 billion acquisition of Chubb in an October 22 shareholders meeting. Following the transaction, the combined entity will become known as Chubb Limited.
Panel Counsel Considerations
Insurance defense law firms will be wondering what this consolidation means, particularly if they sit on the ACE panel or the Chubb panel (or both). That is a good question!
Applying the concept of risk management inherent in insurance, the managing partner at ACE or Chubb panel firms will want to be hedging their bets. Exposure levels grow with the degree to which the law firm’s revenue level is tied to one of these two accounts.
While revenue enhancement through cross-selling is likely to be a major initiative in the new entity, cost-cutting is almost certain to be a longer term goal. Overlaps in departments like claims, litigation management, legal, sales, and HR will all be subject to review once the ACE / Chubb deal closes, which is expected to be in the first quarter of 2016.
Now is always a good time for insurance defense law firms to assess risk, since an effective business development campaign takes time to create and implement. As ACE and Chubb await the closing of the deal, law firms are advised to get into action with their own risk management strategies.
Remember: Never Stop Marketing!
One thing is certain from a business development perspective: law firms should always be on the lookout for prospective new insurance and self-insured clients. The best time to get new business is when you have business. Waiting until desperation sets in is not a productive business development strategy.
About the Author: Law Firm Marketing Consultant Margaret Grisdela
Margaret Grisdela is president of Legal Expert Connections, Inc., a national legal marketing agency, and author of the book Courting Your Clients. She specializes in insurance defense marketing, employment law marketing, and serving as an outsourced legal marketing director. She welcomes all law firm inquiries. Connect via LinkedIn or at 1-866-417-7025.