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InsurTech vs Telecommunications SaaS Churn Rate

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

InsurTech has a lower monthly churn rate (1.5%) than Telecommunications SaaS (3%), a difference of 1.5 percentage points. InsurTech median ARPU is $290 versus $250 for Telecommunications SaaS.

Head-to-head benchmarks

MetricInsurTechTelecommunications SaaS
Monthly churn1.5%3%
Annual churn16.9%30.6%
Median ARPU$290$250
Typical customer base50-1,500500-20,000

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%
Full InsurTech benchmark

Top telecommunications saas churn drivers

  • API integration depth made migration too costly - until a breaking change28%
  • Usage-based pricing spikes triggered cost re-evaluation25%
  • Competitor offered better reliability SLAs or uptime guarantees20%
  • Regulatory compliance requirements changed (STIR/SHAKEN, GDPR)15%
Full Telecommunications SaaS benchmark

Why insurtech retains better than telecommunications saas

The 1.5-point gap between InsurTech and Telecommunications SaaS reflects differences in switching cost, value density, and purchase motivation. InsurTech customers face higher integration and data-migration friction, which extends tenure. Telecommunications SaaS tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.

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