Insurance stocks: Shares of Life Insurance Corporation of India, SBI Life, ICICI Lombard General Insurance and other Indian insurers traded in the green in early deals on Wednesday, December 17, after the Lok Sabha cleared the Insurance Laws Amendment Bill.
Shares of India’s largest insurer, LIC of India, rose 0.65%, with the LIC share price touching an intraday high of Rs 859.95 on the BSE. ICICI group companies — ICICI Lombard General Insurance and ICICI Prudential Life Insurance — also gained more than 1% each.
ICICI Lombard General Insurance emerged as the top-performing insurance stock in the morning session, advancing 1.47% to Rs 1,978.65, while ICICI Prudential Life Insurance climbed 1.02% to Rs 643.25.
Niva Bupa Health Insurance, SBI Life Insurance, Max Financial Services and Star Health Insurance also posted modest gains. However, stocks such as Go Digit, HDFC Life and Canara HSBC Life Insurance traded with some losses.
The Insurance Amendment Bill, introduced by Finance Minister Nirmala Sitharaman and approved by the Lok Sabha, includes provisions for:
Hanut Mehta, CEO and Co-Founder at BimaPay Finsure, said the Bill marks a structural reform that could meaningfully reshape India’s insurance ecosystem. He noted that higher foreign participation is likely to attract long-term capital, global underwriting expertise and stronger product innovation, supporting deeper insurance penetration across segments.
Overall, the amendment has the potential to foster a more competitive and well-capitalised insurance market, he added.
Domestic brokerage HDFC Securities said the proposed amendments, along with recent GST rate rationalisation, are likely to improve insurance penetration and awareness through streamlined regulations.
“We believe stabilisation of government policies and minimal regulatory intervention will be key monitorables for a re-rating of the insurance sector,” the brokerage said.
Its top picks across life, general and standalone health insurers include SBI Life, ICICI General Insurance and Niva Bupa. The brokerage also prefers Policy Bazaar as a platform play within the insurance ecosystem.
