Insurance Stocks in India 2025
Posted by : sachet | Wed Jan 22 2025

Over the past few decades, the insurance industry in India has witnessed prominent growth and alterations. As a result, insurance stocks have delivered effective returns in this period. The insurance sector in India is projected to grow at an average rate of 7.1% by 2028. This seems like an impeccable opportunity for investors to build their wealth. The public and private enterprises engaged in providing insurance are gaining a compelling advantage of IRDAI’s (Insurance Regulatory and Development Authority of India) commitment to achieve “insurance for all” by the end of 2047.
Multiple factors play a crucial role in fostering the growth of the insurance sector. These include government initiatives, rising disposable income, privatisation, and regulatory frameworks. Thus, everyone needs to consider such factors when investing in the insurance sector stocks.
What are Insurance Sector Stocks?
Insurance stocks are the equities or shares of companies that provide health, life, and general insurance. Increasing health consciousness among people helped such companies generate more revenue through premiums. Are you a long-term investor seeking an opportunity to enter into a rapidly growing sector? If yes, you’ve reached the right spot. This piece will provide you with an overview of the best insurance sector stocks in India and how you can invest optimally to diversify your portfolio. Keep scrolling to explore more.
Insurance Stocks List By Market Capitalisation
Stock Name | LTP (in ₹) | Market Capitalisation (in cr.) | 52-Week High (in ₹) | 52-Week Low (in ₹) |
Life Insurance Corporation Ltd. | 915.10 | 5,79,000 | 1,222.00 | 667.15 |
Bajaj Finserv Ltd. | 1,598.55 | 2,55,000 | 2,029.90 | 1,419.05 |
SBI Life Insurance Company Ltd. | 1,506.95 | 1,51,000 | 1,936.00 | 1,307.70 |
HDFC Life Insurance Company Ltd. | 684.95 | 1,47,000 | 761.20 | 511.40 |
ICICI Prudential Life Insurance Company Ltd. | 683.15 | 98,680 | 796.80 | 463.45 |
ICICI Lombard General Insurance Corporation Ltd. | 1,861.45 | 92,080 | 2,301.90 | 1,353.50 |
General Insurance Corporation of India Ltd. | 396.70 | 69,600 | 467.80 | 292.65 |
New India Assurance Company Ltd. | 190.18 | 31,340 | 324.70 | 168.80 |
Max Financial Services Ltd. | 1,189.00 | 41,040 | 1,306.45 | 854.25 |
Star Health & Allied Insurance Company Ltd. | 456.20 | 26,800 | 647.00 | 452.7- |
*Data is updated as of 27th November 2024
Things to Consider When Investing

Investors with insurance sector stocks in their diversified portfolios enjoyed great returns over the past few years. But did you know that investing in insurance stocks requires an individual to consider some potential factors that can impact their whole investment journey? Let’s explore such factors to better understand the optimal investment.
- Dividend Yield
The dividend is not part of capital appreciation. It is a kind of regular income for investors to earn on their investments. Choose the insurance sector stocks providing high dividend yield to their investors. Thus, you will get the benefit of interim and final dividend policies of the organisation to manage your daily expenses. You can check the record of such stocks and their dividend announcements.
- Distribution Channels
Assess marketing strategies and agile networks of insurance companies to determine their insurance distribution capabilities. An insurance company must have effective supply chain management to generate revenue from the market. The best insurance stocks in India with effective distribution channels could be a “cherry on top” in the stock market.
- Claims History
Distribution of insurance is good for generating revenue, but providing a claim on that could incur a huge expense in an organisation. In this factor, you can check the insurers historical claims and loss ratios to have an idea of their future performance in the competitive market. Try investing in insurance stocks in India that have a stable claim history and financial health to fix your ideal return percentage.
- Regulatory Framework
IRDAI regulates insurance companies in India. When investing in insurance sector stocks, stay informed and updated about the regulations and how the selected company is abiding by them. Choose organisations that comply with all rules and regulations to eliminate any chance of higher legal penalties that could impact their profitability in the coming years.
Best Insurance Sector Stocks Based on 1-Year Returns
Stock Name | 1-Year Returns (%) |
Life Insurance Corporation Ltd. | 35.70 |
General Insurance Corporation of India Ltd. | 27.25 |
ICICI Prudential Life Insurance Company Ltd. | 23.88 |
Max Financial Services Ltd. | 18.23 |
*Data is updated as of 27th November 2024
Dividend Yield in Insurance Stocks in 2024
Stock Name | Dividend Yield (%) |
General Insurance Corporation of India Ltd. | 2.52 |
Life Insurance Corporation Ltd. | 1.09 |
New India Assurance Company Ltd. | 1.08 |
ICICI Lombard General Insurance Corporation Ltd. | 0.62 |
*Data is updated as of 27th November 2024
Advantages of Investing in Insurance Sector

Apart from capital appreciation, investing in insurance stocks in India provides different benefits to investors. These include.
- High Dividends: Insurance sector stocks in India often declare high dividend payouts. Investors seeking shares providing higher dividends can consider them. For example, General Insurance Corporation of India Ltd. announced a dividend payout of 2.52%, which is very high across the sector. It could be the passive income for investors as it is not part of capital appreciation.
- Digital Transformation: In this rapidly growing technological era, insurance companies are keenly accepting digital tools and techniques to enhance their customer experiences. Investors can get exposure to this digital transformation and its efficiency to improve the business’ reach.
- Government Support: IRDAI is a government authority regulating the insurance sector in India that supports companies with the aim of “insurance for all”. Moreover, there are several other initiatives of the government, such as PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana), PMFBY (Pradhan Mantri Fasal Bima Yojana), PMSBY (Pradhan Mantri Suraksha Bima Yojana), etc. helping companies to increase their sales. It will provide benefits to the investors having insurance sector stocks in their portfolio.
- Rising Awareness: Increasing awareness of life expectancy and the need for insurance are the driving forces behind the rise in demand for insurance products. People in India are becoming health conscious, and the cost of healthcare services is significantly increasing daily. This could help insurance companies increase their sales and provide indirect benefits to investors in terms of dividends and capital gains.
Risks Associated With Insurance Sector Stocks
Investing in insurance stocks in India comes with multiple risks. These could impact the potential of the stocks to deliver healthy returns. Identify and understand the risks to mitigate them effectively when investing in.
Risks | Impact |
Economic Slowdown | It can create market volatility and impact stock prices by reducing sales. Create a diversified portfolio to mitigate this risk of investment. |
Aggressive Competition | High competition in the insurance sector in India could pressure your selected company to grow in the market. Assess and analyse the insurance stocks in India that can sustain a competitive edge. |
Regulatory Risks | Changes in rules and regulations might create hurdles for insurance companies to comply with them effectively. It includes increased capital requirements, operating in specific areas, etc. Choose stocks with a compelling track record of complying with the rules and regulations imposed by the authorised body. |
Let’s Wrap
The insurance sector in India has the potential to grow in the upcoming decades, which will benefit investors in terms of wealth generation. Assessing the best insurance stocks in India requires investors to look over the factors that are affecting them. And it is essential to create a diversified portfolio of investments. Research the top stocks of this promising industry to choose the relevant ones. Also, you can use the Univest app as your stock advisor to invest in the right stock at the right time.
FAQs On Insurance Stocks in India
1. What are the best insurance stocks in India?
Ans. Here are the best insurance stocks in India to invest in 2025.
Stock Name | Market Capitalisation (in cr.) |
Life Insurance Corporation Ltd. | 5,79,000 |
Bajaj Finserv Ltd. | 2,55,000 |
SBI Life Insurance Company Ltd. | 1,51,000 |
HDFC Life Insurance Company Ltd. | 1,47,000 |
ICICI Prudential Life Insurance Company Ltd. | 98,680 |
ICICI Lombard General Insurance Corporation Ltd. | 92,080 |
General Insurance Corporation of India Ltd. | 69,600 |
*Data is updated as of 27th November 2024
2. Is investing in insurance stocks worth it?
Ans. The insurance sector has become one of the prominent options for investors to invest in a stable and rapidly growing market. The industry is expected to grow by 7.1% by 2028 and will deliver higher returns to investors. Thus, investing in insurance stocks in India could be a good choice to generate higher returns in the long run.
3. How to invest in insurance stocks?
Ans. Investing in insurance sector stocks is easy. You just need to follow some steps.
- Register with a broker and open a demat account.
- Conduct research or use a stock advisory platform to get the best recommendations.
- Pick the high-potential stocks to diversify your portfolio.
- Enter the quantity and place an order to invest in insurance stocks in India.
- Track your returns in the portfolio section and find the right time to book profit.
4. What is the future of the insurance market in India?
Ans. The insurance sector in India is poised to become one of the rapidly growing markets in the coming years. It is estimated that the life insurance sector will grow with a CAGR of 32% in the upcoming years. Thus, investing in insurance stocks in India could be a good choice for building wealth and generating higher returns from the stock market investment.

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