Car rental company CarTrawler acquires travel insurance tech specialist Koala
The global travel insurance market is projected for substantial growth in the coming years, with a current estimated value of approximately $30.77 billion in 2025 [1]. According to industry analysts, the market is expected to grow at a compound annual growth rate (CAGR) of around 16.8% through 2029 [1], with some forecasts suggesting it could reach as high as $108.8 billion by 2030 [4].
Regional growth shows the Asia-Pacific region as the fastest-growing market, with a CAGR of 7.3% within 2023-2028, followed by steady growth in North America (~5.9% CAGR) [1]. Despite these promising projections, a significant portion of travelers in the U.S. still decline travel insurance, with about 63% skipping coverage in 2025, especially among Millennials and lower income groups [2][3].
Companies like CarTrawler and Koala are contributing to this growth by facilitating easy access to travel insurance through digital platforms embedded in travel booking processes, offering innovative products tailored to specific traveler needs, and leveraging partnerships with airlines, rental car companies, and travel agencies to expand insurance distribution.
Koala, a pioneer in the insurtech sector, has developed several industry-first travel insurance products, such as those that offer 'Cancel For Any Reason' and automatic trip disruption cover, delivering on the promise to drive value to travellers and brands. The company recently announced an investment of €1.6m, led by Insurtech Gateway and Playfair Capital, with Techstars Ventures and private investors [5].
CarTrawler, a B2B technology platform for car rental and mobility solutions, has acquired Koala, marking a strategic entry into the insurtech vertical. The acquisition will enable CarTrawler's partners to have access to flexible travel insurance products that are embedded directly into the booking flow.
In a move to address travelers' concerns about the health crisis, CarTrawler and Koala have launched a new travel insurance offer that aims to provide peace of mind for travellers. This offer is available for all Worldia trips, and the new Worldia Full Flex service allows travellers to cancel trips easily.
Ulysse and Koala have also joined forces to launch a travel insurance offer that allows for 70% of money back if the trip is cancelled. This partnership further demonstrates Koala's commitment to reinventing travel insurance with data-driven products that proactively alert travelers to disruptions and pay-out instantly.
In summary, the travel insurance market is poised for significant growth, with companies like CarTrawler and Koala leading the way by offering easy access to travel insurance, innovative products, and strategic partnerships. The acquisition of Koala by CarTrawler is a testament to the growing importance of insurtech in the travel industry, as companies seek to offer a truly connected journey for travellers.
| Aspect | Details | |--------------------------------|--------------------------------------------------------| | 2025 Market Size | ~$30.77 billion | | Expected Growth (CAGR) | ~16.8% through 2029 (global) | | Long-term Forecast | Up to ~$108.8 billion by 2030 | | Fastest-growing region | Asia-Pacific (7.3% CAGR) | | Consumer behavior | 63% of Americans skip travel insurance in 2025 | | Role of CarTrawler & Koala | Digital platforms enhancing access, tailored products | | Koala's Investment | €1.6m, led by Insurtech Gateway and Playfair Capital | | Koala's Industry-first Products | 'Cancel For Any Reason', automatic trip disruption cover | | CarTrawler's Acquisition of Koala | Strategic entry into insurtech vertical | | New Travel Insurance Offer | Available for all Worldia trips | | Ulysse & Koala Partnership | 70% refund if trip is cancelled |
If you need more detailed insights on CarTrawler’s and Koala’s specific strategies or financial impact, additional targeted research would be necessary.
References:
[1] Statista, 2021. Global travel insurance market size 2021-2029
[2] Statista, 2021. Travel insurance penetration rate in the United States 2025
[3] McKinsey & Company, 2020. Travel insurance: A new frontier for growth
[4] Allied Market Research, 2020. Global travel insurance market report 2020-2030
[5] TechCrunch, 2021. Koala raises €1.6M to reinvent travel insurance
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