Bad Bunny had a problem. Days before the Puerto Rican mega-star was set to perform in
Colombia earlier this year, the possibility of heavy rains threatened to turn three sold-out shows in Medellin into multimillion-dollar losses.
Solutions were few. Traditional event cancellation insurance is rarely available so close to a performance date. Even if a policy could be secured, geography p
osed another challenge. The nearest official weather sensor sat a mile from the open-air venue — too
far, in a tropical city with steep terrain and complex microclimates, to serve as a reliable trigger for a payout.
So a transatlantic team of brokers, underwriters and meteorologists devised a workaround to save Bad Bunny from losses: They installed a temporary weathe
r station inside the stadium, linked to a bespoke policy that would pay out if rainfall exceeded a set threshold.
The ad hoc fix shows how concert, sports and live event organizers are rethinking their appr
oach to nature’s unpredictability — and highlights how a specialized corner of the insurance market is evolving to meet that need.
So-called parametric insurance, which doesn’t require proof of loss, has grown in recent years as extreme weather increasingly disrupts the global economy. Re
newable energy companies use it to manage swings in wind and sunshine. Others rely on it to prot
ect property and goods from cyclones and floods that disrupt supply chains.
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But preparing for a hyper-local weather event in a window of just a few hours — say, heavy rain during Formula 1 races — is uniquely challenging. The s
hort time frame magnifies atmospheric volatility, making it difficult for insurers to accurately price risk. O
n-site weather stations c
an help address that, with the caveat that the narrower the window, the more granular the data must be.
“The limiting factor that we have in this business is always data,” said Ralph Renner, head of origination at strategic risk advisor Parameter Climate.
While Vaisala Oyj — the Finnish-listed weather intelligence and monitoring firm that installed the equipment — declined to name the performer and most in
volved were restricted due to legal agreements, one person familiar with the operation confirmed the client was Bad Bunny.
A Stadium Weather Station
To gather data ahead of Bad Bunny’s concerts, reinforcements were needed quickly. David Wh
itehead, who works for Vaisala, flew to Medellin with equipment in tow.
Each day, Whitehead set up two groups of sensors at Atanasio Girardot stadium. One was a
military-grade weather station measuring temperature, wind speed and precipitation. The other was a backup rain gauge.
With front-row seats to the performance, which he declined to disclose details about, White
head got to work, monitoring the sensors’ operation and keeping curious backstage staff from getting too close.
“Redundancy is key,” he said. “We really can’t fail. I can’t find out later that something wasn’t recording or was erroneous.”
