SMS is the highest-engagement channel in insurance outreach — open rates above 90%, response rates 4–5x higher than email, and faster decision loops because text conversations move in real time.[3] It's also the channel with the most clearly defined and actively enforced consent requirements in telemarketing law. SMS done right is a significant competitive advantage. SMS done wrong produces lawsuits faster than almost any other TCPA violation.
The Consent Requirement
Under TCPA, sending a marketing text to a mobile number using an auto-dialing system requires prior express written consent naming your specific company. Under FCC 23-107 (effective January 27, 2025), that consent must be one-to-one — a generic lead form opt-in shared with multiple businesses no longer satisfies the requirement.[1]
What valid SMS consent looks like: a prospect visits a form and sees clear disclosure: "By submitting this form, you consent to receive text messages from [Your Agency Name] at the number provided. Message and data rates may apply. Reply STOP to opt out at any time." The disclosure must name your agency specifically. A general "receive communications from our partners" statement does not satisfy FCC 23-107.
The Prior Business Relationship Question
Some agents believe they can text prospects without consent based on a prior business relationship (PBR). PBR does not exempt you from TCPA consent requirements for SMS under current FCC rules. Do not rely on PBR as your consent basis for any ATDS-generated SMS campaign.
Safe Use Cases
Use Case 1: Opt-In Confirmation and Callback Scheduling
A prospect who has consented via your form or prior interaction can receive an SMS confirming their appointment: "Hi [Name], confirming our Medicare review call tomorrow at 2 PM. Call [number] to reschedule. Reply STOP to opt out." This is the lowest-friction, highest-value use case — the prospect is expecting the message, no-show rates drop significantly.
Use Case 2: Follow-Up After Verbal Consent on a Live Call
If a prospect on a live call verbally consents to a text — "Can I send you my contact info?" / "Sure, go ahead" — document the consent with date and timestamp in your call log. This supports a limited follow-up: contact info, next step, opt-out instruction. Don't build a multi-week drip campaign on verbal consent alone.
Use Case 3: Re-Engagement with Documented Consent
For prospects in your re-engagement queue who originally came through an opt-in form with valid documented consent: a single SMS at the start of the re-engagement sequence is effective. Two requirements: the consent must name your agency specifically, and it must not be more than 18 months old without re-affirmation.
Required Elements of Every Compliance SMS
- Identification: Your name and agency name in the first message of every new thread
- Opt-out instruction: "Reply STOP to opt out" — required in every marketing SMS
- Callback number: Your direct number for interested prospects
- Message length: Under 160 characters for single SMS delivery
STOP Handling — Critical
STOP HANDLING:
A STOP reply must be honored within 10 business days.[2] In practice your SMS platform should auto-suppress immediately. Every STOP reply also generates an internal DNC obligation — add the number to your company DNC list that same day, not just to the platform's suppression list. Platform suppression lists can be lost when you switch tools. Your internal DNC list is permanent.
References
- Federal Communications Commission. (2024). FCC 23-107. One-to-one consent for marketing texts. Effective January 27, 2025.
- CTIA. (2019). Short Code Monitoring Handbook. STOP handling: 10 business days.
- EZTexting. (2023). State of SMS Marketing Report. SMS vs. email open and response rate comparison.
