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Payment Plans
Jetty's flagship product, Jetty Deposit, provides an insurance alternative to traditional security deposits. When a renter moves out and a claim is approved, Jetty pays the property manager and collects repayment from the renter.
Project Summary
Validated payment plans through A/B testing as a lever to improve claim recovery rate and reduce insurance losses.
Background & Context
When a renter moves out and a claim is approved, Jetty pays the property manager upfront — then seeks repayment from the renter. This recovery moment is critical: every dollar we don’t recover is a direct loss.
As an insurance business, profitability is measured by loss ratio — the ratio of claims paid to premium earned. By Q3 2023, our loss ratio had climbed to 108%, meaning we were paying out $108 in claims for every $100 in revenue.
Improving our claims recovery rate became one of the most direct levers we had to bring this ratio back in check.
Problem Statement
Despite high engagement with our repayment features, claim payment conversion lagged — particularly for renters with larger balances. User research revealed the core issue wasn’t intent, but affordability.
The Solution
We hypothesized affordability — not awareness — was the primary barrier for renters with high claim balances. To test this, we ran a painted door A/B experiment:
- Control Group – Only saw the option to pay in full
- Experiment Group – Saw the option to request a payment plan, which triggered manual outreach by our Recovery team
We defined success across 3 dimensions:
- Demand – % who clicked “Request a Payment Plan”
- Adoption – % who successfully set up a plan after outreach
- Recovery – % of balance repaid vs. control
Results & Learnings
The tests validate our hypothesis as the results were strong:
- 30% of renters clicked to request a plan
- 85% of those completed setup
- Renters on plans repaid ~70% of their balance on average
The test validated our hypothesis and gave us the confidence to invest in a self-serve payment plan experience, projected to recover an additional $1.8M annually.
// WORK
ABHI
SINGH
