Bad Bunny Secures Parametric Insurance for Colombia Concerts Against Rain Risks

A Puerto Rican mega-star, Bad Bunny, secured parametric insurance to protect against weather-related disruptions at three sold-out concerts in Medellin, Colombia, earlier this year. The policy was designed to pay out if rainfall exceeded a set threshold, addressing the risk of cancellations or reduced attendance due to heavy rain.

This bespoke coverage was arranged just days before the events, showcasing innovative risk management in the live entertainment sector.

The concerts, held at Atanasio Girardot stadium on January 23, 2026, generated $23.7 million from 145,500 tickets, according to Pollstar data. Traditional event cancellation insurance was not feasible so close to the performance dates, prompting the use of parametric insurance, which triggers payouts based on predefined weather metrics without requiring proof of loss.

This setup measured precipitation, temperature, and wind speed, providing granular data to support the insurance policy. The station included redundancy measures, such as a backup rain gauge, to ensure reliable readings during the events. The nearest official weather sensor was a mile away, which was deemed insufficient due to Medellin's steep terrain and microclimates.

By placing sensors on-site, the team minimized basis risk—the discrepancy between actual venue conditions and distant measurements.