Insurtech travel insurance provider Koala has secured almost €1.6m in funding. The investment was led by London based incubator and fund Insurtech Gateway alongside Playfair Capital, Techstars Ventures, and private investors.

Koala offers a data-driven approach and its first product offers flight disruption insurance, providing instant compensation for flight delays and cancellations.

Ugo Weyl, co-founder and chief executive at Koala, said: “Every year, hundreds of millions of passengers suffer flight disruptions and face an uphill battle to claim compensation. Travellers face antiquated claims procedures, with only 15% of customers receiving a pay-out. We felt this was unfair, a delay is a delay and customers should be compensated 100% of the time.”

Over the next 3 months, Koala will go live in the booking journeys of 2 airlines and 4 travel agencies.

Peter Davies, chief executive of investor Airline Management Group and former chief executive of 4 airlines, said: “Koala offers a unique way for airlines to save money and overcome one of their most significant customer service challenges, while at the same time offering an excellent experience to their travellers.”

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