Board Diversity and Risk-Taking Behavior in Nigerian Insurance Companies

This study investigates the relationship between board diversity and risk-taking behavior in Nigerian insurance companies using a panel dataset spanning 2017 to 2023. Board diversity, encompassing gender, age, nationality, and professional background heterogeneity, is theorized to influence corporate risk appetite through its effect on decision-making quality, information breadth, and governance effectiveness. In insurance companies, where risk assumption is the core business activity, board oversight of risk-taking decisions is particularly consequential. This research constructs a panel using data from eighteen insurance companies listed on the NGX, measuring board diversity through gender diversity ratio, age variance, proportion of independent directors, and proportion of directors with actuarial or insurance-specific qualifications. Risk-taking is proxied by investment risk ratio, reinsurance cession ratio, combined ratio volatility, and premium growth aggressiveness. Fixed effects panel regression with Driscoll-Kraay standard errors is applied to account for cross-sectional dependence. The study controls for firm size, leverage, and profitability. Preliminary findings are expected to reveal that gender diversity and professional specialization diversity are the board dimensions most significantly associated with risk-taking moderation. The research contributes to corporate governance literature in Nigeria's insurance sector and informs NAICOM's board composition guidelines. Keywords: Board Diversity, Risk-Taking, Corporate Governance, Insurance Companies, Nigeria.