The insurance industry has evolved over time thereby undergoing all the life cycle stages characteristic of any industry. The changes in the life cycle have resulted in different changes in the business strategies of different firms within the industry. During the introduction stage of the life cycle, most firms were rushing to provide unique product designs. The emergence of new products from different firms resulted in the change of business strategies in the different firms. For instance, firms have changed their products to match the pressing needs of the target markets.

In the growth stage however, the focus is much more on the process and not the product. Firms have to be more innovative in the provision of the products. Ideally, some changes in the business strategy include the shift from print media advertising to online marketing where presence is much more. In the third stage of shakeout, the industry is much more turbulent because most of the firms provide the same products. Competition for new clients is on a very high level leading to collapse of some firms. One business strategy would be to invest in mergers to increase the client base while marinating sustainability.

The fourth stage of the life cycle is the maturity stage where the industry is now more stable and established companies remain strong. In this stage, firms are bound to change their business strategy to reflect personalized customer service. In this way, the firms can increase their market share and their dominance. In the final stage of decline, the revenues are on a decline owing to the emergence of a new substituting industry. Firms may engage in selling of shares as a business strategy to cushion them from harsh losses in the market.

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