SMS Benchmarks for Finance and Insurance

Understanding SMS benchmarks is especially important for finance and insurance teams navigating strict regulations and sensitive customer relationships. This introduction explores the core SMS performance metrics influencing communication outcomes in these sectors.

The following stats come from analyzing 483,254 engaged contacts.

Average Response Rate

The average response rate in finance and insurance is 56.66%, showing how frequently policyholders and clients reply to text messages about their accounts, coverage, or applications.

Response rate reflects the portion of recipients who reply to messages that are successfully delivered. It is calculated by dividing the number of SMS responses by the total texts that reach customers.

In finance and insurance, this metric helps teams understand how clearly they communicate time sensitive details like approvals, renewals, payment reminders, and claim updates. Strong response rates signal that conversations are timely, relevant, and trusted within a tightly regulated environment.

Average Opt-Out Rate

The average opt-out rate for finance and insurance is 1.33 percent, which reflects a notably higher sensitivity to messaging in a trust driven environment.

Opt-out rate represents the portion of subscribers who text STOP or otherwise unsubscribe from SMS communication during a given period.

It is calculated by dividing the total number of opt-outs by the total number of successfully delivered messages, then expressing the result as a percentage.

In finance and insurance, this metric is critical because it highlights whether alerts, policy updates, and promotional notices feel relevant, timely, and respectful of privacy.

Monitoring opt-out rate helps teams make sure messaging supports long term client confidence and regulatory expectations.

Average Click-Through Rate

The average click-through rate in finance and insurance is 18–28% which shows how frequently customers interact with links sent in text based campaigns.

A click-through rate is the percentage of delivered SMS messages that prompt at least one tap on a tracked link.

To find it, divide total link clicks by the number of successfully delivered texts and multiply that result by 100.

In finance and insurance, a strong click-through rate signals that people trust the message enough to explore account alerts, policy details, payment reminders, fraud checks, and product updates.

Average Conversion Rate

The average conversion rate for finance and insurance is 20–30%+, reflecting how many sms readers complete a key step after receiving a message.

Conversion rate describes the share of people who move from reading a message to completing a target outcome such as starting a loan application, submitting a quote request, or purchasing a policy.

It is calculated by dividing the number of successful outcomes by the total sms messages delivered, then converting that figure into a percentage.

This metric is crucial in finance and insurance because it shows how effectively messaging supports customer acquisition, risk appropriate product uptake, and long term client value while helping teams make sure communication stays relevant and compliant.

Average Delivery Rate

The average delivery rate for finance and insurance is 98–99%, which shows that nearly every text reaches the customers phone as planned.

This strong consistency supports secure alerts, payment reminders, fraud notifications, and claim updates that customers rely on daily.

Delivery rate is calculated by comparing the number of messages that arrive successfully with the total sent, while removing those blocked by carriers or sent to invalid numbers.

In finance and insurance, this metric is crucial because it proves that time sensitive information is actually reaching people, helping teams make sure compliance, risk alerts, and customer communication stay reliable.

Average Open Rate

The average open rate is 98%, which shows that people in finance and insurance almost always read text messages they receive.

This figure signals that mobile messaging is a highly reliable channel for client updates, reminders, and alerts.

Open rate is the percentage of successfully delivered texts that recipients actually view.

It is calculated by taking the number of opened messages, dividing that by the number of messages delivered, then multiplying by 100.

In finance and insurance, this metric is crucial because it reflects how quickly customers see time sensitive information such as fraud warnings, payment notices, or policy changes, which helps make sure communication stays timely and trusted.

Average Time to Read

The average time to read an SMS in finance and insurance is 3 minutes.

Time to read describes how long customers take to open and view a text after it is successfully delivered to their device.

It is calculated by tracking the time gap between message delivery and first open across many conversations and then computing the overall average.

This metric is crucial in finance and insurance because delayed reading can affect fraud alerts, payment reminders, policy notices, renewal messages, and urgent compliance updates.

Accurate time to read data helps teams plan message timing so that critical information reaches people when it matters most.

Average Response Time

The average response time for finance and insurance is 90 seconds, showing how quickly customers typically reply once they receive a text message.

Response time is the gap between when a message reaches the customer and when their first reply is recorded.

It is calculated by averaging this time interval over all relevant conversations within a chosen period.

In finance and insurance, response time influences how promptly claims are clarified, policy changes are discussed, and payment issues are resolved.

Faster replies help teams handle sensitive information more smoothly and make sure regulatory or time bound processes stay on track.

Average Bounce Rate

The average bounce rate for finance and insurance is 1–2% , which shows that only a very small share of SMS notifications fail to reach customers.

Bounce rate describes the proportion of text messages that never arrive at the intended recipient.

It is calculated by dividing undelivered messages by all messages sent, then converting that figure into a percentage.

In finance and insurance this metric is crucial because institutions depend on reliable delivery for fraud alerts, payment reminders, policy updates, and claim notifications.

A consistently low bounce rate indicates accurate contact data, stable routing, and communication that supports customer trust and regulatory compliance.

Average Messages per Conversation

Finance and insurance businesses see an average of 3.7 messages per conversation, which signals high engagement.

This metric captures how many total messages customers and agents exchange within a single conversation thread.

It is calculated by taking the full count of messages in a period and dividing it by the number of unique conversations.

In finance and insurance, a higher average often reflects deeper discussions about policies, claims, approvals, or account questions.

Tracking this intensity of back and forth helps teams refine scripts, reduce confusion, and make sure complex financial decisions are clearly understood.

Overview of Finance and Insurance

The finance and insurance sector relies on accurate, timely communication to manage sensitive information and maintain customer confidence.

Customers expect quick updates, instant access to account or policy details, and clear explanations without long wait times or missed messages.

Traditional channels can be slow or crowded, which increases the risk of confusion, delays, or overlooked communication in high stakes situations.

SMS offers immediacy, near universal reach, and very high engagement rates, making it easier for organizations to share important information when it matters most.

By supporting fast, reliable interactions on mobile devices, SMS helps finance and insurance businesses streamline operations, reduce friction, and deliver a more responsive customer experience.

SMS Use Cases in Finance and Insurance

SMS is valuable for finance and insurance because it delivers time-sensitive messages directly to customers' phones.

It reduces friction for payments, claims, and identity protection while improving response rates and operational efficiency.

Automated SMS reminders for upcoming payments and past-due notices reduce late payments and make sure customers can click to pay or schedule deferrals.

Real-time fraud alerts and one-time passcodes sent by text provide an immediate, auditable channel for suspicious activity and secure account access.

SMS updates about claim progress, missing documents, and appointment windows keep customers informed and make sure adjusters and clients coordinate faster.

Advisor appointment confirmations, secure document-drop reminders, and coordinated loan-closing texts shorten turnaround times and make sure required steps are completed.

FAQs About SMS Benchmarks for Finance and Insurance

How can finance and insurance brands use SMS to improve customer trust?

Finance and insurance companies can use SMS to deliver quick fraud alerts, policy updates, and payment confirmations that help customers feel protected and informed. When texts are timely and clearly written, people are more likely to view the brand as reliable and transparent.

What types of SMS messages work best for onboarding new finance and insurance clients?

During onboarding, SMS can guide clients through account setup, identity verification, and first-time logins in a simple step-by-step way. Short texts with clear next actions reduce confusion and make the first experience with the service feel smooth and supportive.

How can SMS support claims and dispute processes in finance and insurance?

SMS can keep customers updated at each stage of a claim or dispute, such as when documents are received, reviewed, or approved. This ongoing communication reduces the need for phone calls and helps customers feel that their issue is being actively handled.

What should finance and insurance companies include in compliant SMS messages?

Finance and insurance providers should include clear identification of the sender, simple language about the purpose of the message, and straightforward instructions for getting help or opting out. Keeping messages concise and transparent helps meet regulatory obligations while still providing helpful information.