CarTrawler, an Irish B2B travel tech company, has acquired Paris-based insurtech Koala to expand its services into travel insurance.

CarTrawler integrates car rental and mobility options for travel brands through its Connect Platform, partnering with over 250 companies globally.

The deal marks CarTrawler’s entry into the insurtech sector and adds insurance products to its existing portfolio.

CarTrawler said the move responds to rising demand from travel partners for more ancillary solutions.

Koala’s technology will be integrated into CarTrawler’s platform, allowing travel brands to embed insurance products into booking flows.

CarTrawler’s partners include airlines such as American Airlines, Jet2.com, Qantas, Virgin Australia, and easyJet.

🔗 Source: Tech.eu

🧠 Food for thought

1️⃣ Embedded insurance market outpaces traditional insurance growth by substantial margins

CarTrawler’s acquisition taps into one of the fastest-growing segments in financial services, with embedded insurance projected to grow from $136.79 billion in 2024 to $210.90 billion by 2025, representing a remarkable 35.14% compound annual growth rate1.

This expansion rate significantly exceeds traditional travel insurance market growth, which is projected at 15.4% annually through 20322.

The speed difference reflects how embedded solutions eliminate traditional friction points in insurance purchasing, as 94% of insurance executives now view embedded insurance as critical to their future strategies3.

CarTrawler’s timing aligns with this shift toward seamless integration, where insurance becomes an invisible part of the booking process rather than a separate purchasing decision.

2️⃣ Travel ancillary services represent untapped revenue potential for distribution partners

The acquisition positions CarTrawler to capture a larger share of the growing ancillary revenue stream, with airlines already deriving nearly 15% of their total revenue from add-on services beyond base fares.

The global travel insurance market alone is projected to reach $71.79 billion by 2032, growing at 15.4% annually2. This represents a significant opportunity for CarTrawler’s 250 travel brand partners, including major airlines like American Airlines, Qantas, and United Airlines, to monetize their customer relationships more effectively.