LIC, Niva Bupa to ICICI Lombard: Insurance stocks rally after Lok Sabha clears Insurance Laws Amendment Bill

Insurance stocks showed a positive trend during the first session on Wednesday, December 17, following the Lok Sabha's ratification of the Insurance Laws Amendment Bill, which not only increased the investor's confidence in the entire sector but also led to an overall market rise. The stock prices of the main life and non-life insurance companies fluctuated in an upward direction with some of the stocks making gains as much as 1.5% in the morning session.

Life Insurance Corporation of India (LIC) being the largest life insurer in India, gained 0.65% on the Bombay Stock Exchange (BSE) and at one point reached the highest price for the day of ₹859.95. The trend of the market getting hereby more positive was not only limited to the state-owned life insurance company but also encompassed the private sector players, among them ICICI group companies that were leading the way in terms of increase in the share price.

Among the insurance stocks, ICICI Lombard General Insurance was at the top, as its price rose by 1.47% to ₹1,978.65. Another ICICI group company, ICICI Prudential Life Insurance, also saw a rise of 1.02% to 643.25 which was mostly due to high buying interest. Other companies in the insurance sector, like SBI Life Insurance and Niva Bupa Health Insurance, had their shares price also go up and they were still in the early session of trading.

Investors were quick to respond positively to the Insurance Laws Amendment Bill being passed by the Lok Sabha, which is bringing about the reforms of modernizing regulations in the insurance sector and thus making it more efficient, thereby attracting investments as well as by strengthening the infrastructure and educating the population on insurance which eventually leads to more insurance penetration in India.

After the legislative obstacle got removed in the Lok Sabha, the investors are now paying close attention to the implementation schedule of the Bill and its projected impact on the operational empowerment, profitability, and the companies' geographical spread. The insurance stocks may continue to be the center of attention as more information becomes available.