Companies are most concerned about the threat of investigations by official bodies, says Chartis Insurance.

Investigations by official bodies such as the Financial Services Authority (FSA), Health & Safety Executive and Serious Fraud Office (SFO) are the overriding concern from among the insurer's clients attending a recent Chartis briefing. This is followed by actions by shareholders (22%), and insolvencies (7%).

David Walters, vice-president, financial lines, Chartis, says: "Regulatory investigations are a genuine cause for concern, particularly in the UK where the OFT, the FSA and the SFO are increasingly active. Significantly, as these bodies get more active, they are pursuing individuals as well as their companies with the possibility of fines and even imprisonment."

Following the news of the first Corporate Manslaughter Act charge, only about a fifth of Chartis clients are making changes to their corporate governance processes, while 40% are keeping a "watching brief".

Walters says: "It is notable that, more than a year after the first company was charged under the Corporate Manslaughter Act, half of those who responded to our questionnaire are still either taking no action or keeping a watching brief. This raises the spectre of possible future D&O claims, if companies do not already have robust corporate governance processes in place."

"From the beginning, underwriters had a very broad view of what was included in a D&O policy, and then shaped it by adding in specific exclusions. So, it is not unusual to find upwards of 20 exclusions in a single policy. We believe that this needs to change and are always looking for ways to include more for our clients, to give them greater certainty," he concluded.

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