Draudimo industrijos gyvavimo ciklo ypatumai
Peculiarities of the Life Cycle of Insurance Industry

Summary/Abstract: Already in the beginning of the last century the dominant opinion was that any product is characterized by particular life cycle. This model proposes that every product either dies just after the institution or it goes through a certain consecutive stages, corresponding to the life cycle stages of early development, growth, maturity, and decline. The object of the research – the life cycle of insurance industry. The aim of the research – to distinguish the main peculiarities of the life cycle of insurance industry and to reveal the essential reasons which allow insurance industry to create beneficial competent climate in the finance market. Methodology of the research – the analysis of scientific, economic and statistical literature; graphic methods and their generalization. Conclusion: 1. In scientific literature product life cycle being estimated in four basic ways: traditional curve, shortened cycle, “missile principal” cycle and “fashion” cycle. 2. Wide economic literature analysis enables to state that there is no one ideal product life cycle, which can be applied to all products. 3. In summary conclusion is made that product life cycle as theoretical term includes characteristics of institutional, growth, saturation, and decline stages. But only after ascertaining practical deviations from ideal product life cycle model it is possible to ascertain very important and exclusive features of various product categories. 4. On the basis of classical product and industry life cycle theory authors of the article are trying to identify the fundamental peculiarities of insurance product and insurance industry life cycles. Problem of insurance product life cycle modeling in the insurance industry arise because of two key reasons: 1) because of specifics of the product itself (it is based on the fact that insurance companies sell to the customer specific information about the object insured), 2) because of specific characteristics of insurance product demand. 5. Distinguishable are those specific insurance product characteristics: • insurance service cycle reasonably consists of two life cycles (one is designed for sales of insurance contract, another one generates insurance contributions of the existing contract), • insurance product can further generate insurance funds of previous cycles despite the fact that insurance company may never again offer that product, • “particularity” of main insurance types such as life and fire insurance is constantly renewed by additional new insurance kinds.

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