In the financial services sector, the conversation around the diversity of boards of directors has correctly expanded in recent years. A large part of the focus has been on gender, race, and age. While these dimensions are crucial topics for diversity and have rightfully taken centre-stage, one often under-appreciated aspect of diversity is industry experience.
Having board members who bring knowledge and expertise from a variety of sectors can prove to be a significant strength in the quality of governance and strategic decision-making.
Financial services, especially insurance companies, do not operate in silos. Our clients span industries as varied as mining, healthcare, retail, technology, and infrastructure. Each sector carries unique risks, growth opportunities, and evolving dynamics. A board composed solely of career insurance/financial services professionals may excel in regulatory compliance, risk assessment and technical oversight but can have gaps in the breadth of perspectives required to anticipate emerging trends or predict challenges our clients may face.
Having boards of directors with experience in other industries—be it energy, pharmaceuticals, manufacturing, or digital technology—broadens the conversation. It challenges conventional thinking, sparks innovation, and entrenches a more comprehensive approach to risk management. This diversity of perspectives helps boards identify blind spots, assess opportunities with greater nuance, and ultimately make decisions that are more relevant to the real-world environment in which their clients operate. This is a fundamental lever that can also offer competitive differentiation between insurance companies as well.
Moreover, diverse industry experience strengthens resilience. It ensures that boards can adapt to systemic shifts such as climate change, technological disruption, and geopolitical uncertainty. Topics that affect every industry and influence macroeconomic development and growth. By combining deep financial acumen with insights from across industries, boards are better positioned to guide their organisations with foresight and agility.
In short, diverse industry experience is not a “nice-to-have”—it is a key driver of relevance, competitiveness, and sustainable success.
Nande Nqoloba | Head: Operations South Africa – Swiss Re Corporate Solutions
