SMS Benchmarks for Insurance

Insurance organizations rely on timely mobile communication to keep policyholders informed and supported. Understanding SMS benchmarks helps teams evaluate how messages perform across the customer journey from quotes and onboarding to claims and renewals.

In this guide, we explore SMS performance metrics tailored to insurance brands and highlight patterns that influence engagement across different communication moments.

Average Response Rate

The average response rate in insurance is between 30 and 45 percent, showing how frequently policyholders reply to SMS communication. These replies often relate to quotes, renewals, policy changes, billing notices, and claim updates that carriers send throughout the customer journey.

Response rate is the portion of recipients who answer a text, found by dividing replies by successfully delivered messages. In insurance, this metric signals how clearly information lands, how quickly customers interact with time sensitive requests, and how smoothly claims or underwriting move forward.

When response rates stay strong, teams gain better policyholder insight and can coordinate service that feels more transparent and dependable.

Average Opt-Out Rate

The average opt-out rate in insurance is 0.4–0.9 percent, which reflects how policyholders respond to ongoing text communication from providers and agents.

The opt-out rate captures the proportion of recipients who reply STOP or otherwise unsubscribe from a messaging list.

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

In insurance, this metric highlights whether renewal reminders, policy updates, and claim alerts feel relevant or intrusive.

Keeping opt-out rates low helps maintain trust and supports clear, reliable contact throughout the policy lifecycle.

Average Click-Through Rate

The average click-through rate in insurance is 18–28% and reveals how frequently policyholders and prospects engage with links included in SMS journeys, email campaigns, or portal notifications.

CTR represents the proportion of successfully delivered messages that generate at least one tap on a monitored URL.

To work it out, divide the total count of link clicks by the volume of messages delivered, then multiply that result by 100.

In insurance, CTR highlights whether customers value content such as quote updates, claim status alerts, renewal reminders, or coverage explanations, guiding more relevant communication strategies.

Average Conversion Rate

The average conversion rate is 3.0–4.5 percent, reflecting how many people take a desired step after engaging with a message from an insurance provider.

Conversion rate is calculated by dividing the number of successful actions such as completed quote forms, policy purchases, or renewal confirmations by the total number of messages delivered.

This percentage matters in insurance because it shows how effectively communication turns interest into concrete protection decisions.

By observing conversion rate over time, insurers can make sure each message supports clearer understanding of coverage options and stronger long term customer relationships.

Average Delivery Rate

The average delivery rate for insurance is 98–99%, which means that nearly every SMS successfully arrives on the policyholder’s phone as expected.

This consistently high result reflects how reliably updates, reminders, and alerts travel through mobile networks in everyday insurance communication.

Delivery rate is calculated by taking the number of messages that carriers confirm as delivered and dividing it by all texts sent, while excluding any that fail because of incorrect numbers or carrier level filtering.

In insurance, this metric is crucial because claims updates, payment notices, renewal alerts, and fraud warnings depend on fast and dependable SMS delivery.

Average Open Rate

The average open rate is 98%, meaning nearly every client reads text messages related to insurance policies and claims updates.

Open rate describes the proportion of delivered texts that people actually view.

It is calculated by dividing the number of opened texts by the number delivered, then multiplying the result by 100 to get a percentage.

For insurance, this metric is crucial because policy reminders, claim status notices, and fraud alerts must be seen quickly.

High open rates make sure customers receive timely information that supports trust and smoother service.

Average Time to Read

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

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

It is calculated by tracking the interval between delivery time and the first open across a large volume of messages, then finding the typical value.

This matters in insurance because quick reading affects claim updates, payment reminders, renewal notices, fraud alerts, and emergency assistance messages, helping providers make sure customers stay protected and informed when it counts most.

Average Response Time

The average response time for insurance is 90 seconds, showing how quickly policyholders usually react after receiving a text message from their provider.

Response time is the period between when a text is successfully delivered and when the first reply is sent.

It is calculated by taking this time gap for every conversation and finding the average across all customer interactions.

In insurance, response time matters because quicker replies help agents clarify coverage, confirm documents, and handle claims communication without long delays.

Fast responses also make sure urgent questions about accidents or policy changes are addressed while details are still fresh.

Average Bounce Rate

The average bounce rate is 1–2%, which indicates that only a tiny portion of sms messages sent in insurance never get through to policyholders.

Such a small share of undelivered texts points to accurate customer data and reliable message routing across carriers.

Bounce rate is calculated by taking the number of messages that fail to deliver, dividing that by all texts sent, then converting the result into a percentage.

In insurance, this metric matters because dependable delivery supports policy renewals, claims updates, payment reminders, and urgent alerts that keep customers informed and protected.

Why Are SMS Metrics Important?

Sms metrics play a crucial role for businesses in insurance because they show how well carriers and agents connect with policyholders who expect clear and timely updates.

Whether sending claim status notifications, payment reminders, or renewal alerts, strong sms performance helps make sure customers receive and act on important information quickly.

Metrics such as delivery rate, open rate, and response rate reveal how attentive clients are to these messages.

Conversion rate and click through rate highlight how effectively texts drive actions like submitting documents or confirming coverage.

By tracking these metrics, insurance providers can refine communication, build trust, and support smoother policyholder experiences.

Overview of Insurance

The insurance industry relies on accurate and timely communication to guide customers through complex information and sensitive decisions.

Policyholders expect quick access to updates, clear explanations, and rapid responses, especially when navigating coverage details or claims.

Traditional channels like email and phone can be slow or difficult to manage at scale, creating frustration and operational strain.

SMS offers near universal reach, immediacy, and engagement rates above 90 percent, making it ideal for time critical interactions.

It helps insurers reduce delays, keep customers informed in real time, and support internal coordination.

By integrating SMS into communication strategies, insurance providers maintain efficiency, build trust, and deliver a smoother overall experience.

SMS Use Cases in Insurance

SMS provides insurance organizations a fast, direct channel to communicate with policyholders, speeding response times and improving satisfaction.

It supports compliance and documentation by creating auditable, time-stamped records of notices and consent for high-volume workflows.

Claims triage and status updates are handled via SMS to collect photos, assign adjusters, and keep customers informed without lengthy phone calls.

Payment reminders and installment links sent by text reduce lapses and make it simple for policyholders to click and pay on mobile devices.

Inspection and appointment coordination uses scheduled SMS confirmations and two-way messaging to make sure adjusters and customers show up on time.

Fraud alerts and suspicious-activity notifications delivered by SMS prompt quick verification and help protect policies with real-time account checks.

FAQs About SMS Benchmarks for Insurance

How can insurance companies use SMS to speed up claims processing?

Insurance providers can use SMS to collect documents, share claim status updates, and schedule inspections with policyholders. This helps reduce back-and-forth phone calls and makes sure customers know what to do next.

What role does SMS play in improving insurance customer service?

SMS allows policyholders to ask quick questions, request callbacks, and get support without waiting on hold. It gives customer service teams a simple channel to resolve common issues and guide people to the right resources.

How can SMS help policyholders manage their insurance policies more easily?

Insurers can send SMS reminders about upcoming renewals, coverage changes, and important deadlines. Policyholders can respond to update details, confirm choices, or request help, which makes managing policies more convenient.

How should insurance companies handle consent and compliance when sending SMS messages?

Insurance companies should always get clear permission before sending texts and provide an easy way to opt out. They must follow privacy rules, protect personal information, and make sure messages only contain appropriate and necessary details.