Asia Index Pvt Ltd, a wholly owned subsidiary of BSE (Bombay Stock Exchange), has launched a new sectoral index named the BSE Insurance Index, aimed at tracking the performance of India’s listed insurance companies. The index offers fund managers, investors, and analysts a focused benchmark for evaluating India’s growing insurance market.
Key Features of BSE Insurance Index
- Constituent Base: Selected from companies listed under the BSE 1000 Index and classified in the insurance industry.
- Weighting Method: Follows a free-float market capitalization method with a 25% cap per stock to maintain diversification and limit overconcentration.
- Launch & Backdated Start:
- Launched: July 2025
- Base Value: 1000 points
- Base Date: 18 June 2018
- Reconstitution Frequency: Semi-annually- June and December, aligned with global index maintenance practices.
- Current Constituents: 12 insurance companies.
Top Constituents & Their Weight (as of June 2025)
| Company | Weight (%) |
| HDFC Life Insurance | 25.19% |
| SBI Life Insurance | 23.81% |
| ICICI Lombard General Insurance | 13.95% |
| Max Financial Services | 12.44% |
| ICICI Prudential Life Insurance | 7.37% |
| LIC (Life Insurance Corporation) | 5.30% |
Performance Metrics (as of 30 June 2025)
| Time Period | Return (%) |
| 1-Year Total Return | 21.92% |
| 3-Year CAGR | 18.05% |
| 5-Year CAGR | 12.68% |
| Since Inception CAGR (2018) | 9.37% |
Utility of the Index
Designed for passive investment strategies, such as:
- Exchange-Traded Funds (ETFs)
- Index Funds
- Acts as a benchmark for:
- Portfolio Management Services (PMS)
- Mutual Funds
- Actively managed portfolios focused on insurance sector exposure.
Significance
- Offers sector-specific transparency to investors.
- Supports insurance sector benchmarking in line with rising financial sector participation in India’s equity markets.
- Reinforces the growing role of insurance as a pillar of India’s formal financial services.