InsurTech vs RegTech Churn Rate
Side-by-side benchmark comparison, updated March 2026.
RegTech has a lower monthly churn rate (1%) than InsurTech (1.5%), a difference of 0.5 percentage points. RegTech median ARPU is $420 versus $290 for InsurTech.
Head-to-head benchmarks
| Metric | InsurTech | RegTech |
|---|---|---|
| Monthly churn | 1.5% | 1% |
| Annual churn | 16.9% | 11.4% |
| Median ARPU | $290 | $420 |
| Typical customer base | 50-1,500 | 50-1,000 |
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%
Top regtech churn drivers
- Regulatory rule change that product had not yet implemented28%
- Financial institution internalized compliance workflow26%
- Acquisition of customer eliminated the compliance function20%
- Product could not scale to new jurisdiction or regulatory body16%
Why regtech retains better than insurtech
The 0.5-point gap between RegTech and InsurTech reflects differences in switching cost, value density, and purchase motivation. RegTech 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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