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Enterprise SaaS vs InsurTech Churn Rate

Side-by-side benchmark comparison, updated March 2026.

Enterprise SaaS has a lower monthly churn rate (0.9%) than InsurTech (1.5%), a difference of 0.6 percentage points. Enterprise SaaS median ARPU is $500 versus $290 for InsurTech.

Head-to-head benchmarks

MetricEnterprise SaaSInsurTech
Monthly churn0.9%1.5%
Annual churn10.3%16.9%
Median ARPU$500$290
Typical customer base50-2,00050-1,500

Top enterprise saas churn drivers

  • Contract non-renewal driven by budget consolidation initiative28%
  • Executive champion departed and replacement chose a different vendor26%
  • Product failed to scale to enterprise data volumes or user counts22%
  • Security or compliance audit failure during annual review15%
Full Enterprise SaaS benchmark

Top insurtech churn drivers

  • Carrier or MGU replaced third-party tool with proprietary system30%
  • Regulatory compliance gap identified during state filing25%
  • Product lacked actuarial or underwriting model depth required22%
  • Poor integration with policy administration system15%
Full InsurTech benchmark

Why enterprise saas retains better than insurtech

The 0.6-point gap between Enterprise SaaS and InsurTech reflects differences in switching cost, value density, and purchase motivation. Enterprise SaaS customers face higher integration and data-migration friction, which extends tenure. InsurTech tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.

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