BSE launches Insurance Index to track sector performance

The BSE, through its wholly owned subsidiary Asia Index, has unveiled a new sectoral benchmark, the BSE Insurance Index, offering investors and fund managers a focused tool to track the performance of India's listed insurance companies.

This index draws its constituents from the BSE 1000 Index, including only those stocks classified under the insurance industry. It uses a free-float adjusted market capitalization weighting method, with a cap of 25% per stock to ensure diversified exposure and prevent concentration risks.

Launched with a base value of 1000, the index is backdated to start from 18 June 2018. It currently comprises 12 insurance companies and is set to be reconstituted semi-annually in June and December, mirroring global best practices in index maintenance.

 

Some of the top-weighted stocks in the index include HDFC Life Insurance (25.19%) and SBI Life Insurance (23.81%). Other notable constituents are ICICI Lombard General Insurance (13.95%), Max Financial Services (12.44%), ICICI Prudential Life Insurance (7.37%), and LIC (5.30%).

Performance-wise, the index has shown impressive returns. As of 30 June 2025, it has delivered a 1-year total return of 21.92%. The 3-year and 5-year annualized returns stand at 18.05% and 12.68% respectively, while the since-inception annualized return clocks in at 9.37%.

According to BSE, the index is tailor-made for passive investment strategies such as ETFs and Index Funds, and also serves as a robust benchmark for PMS, mutual funds, and actively managed portfolios with exposure to the insurance space.

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