Augment Risk, a risk capital and reinsurance solutions broker, has expanded the capabilities of its Latin America (LatAm) platform to include specialized weather parameters and structured weather risk transfer capabilities.
The broker explained that this expansion is in line with its capital-first philosophy, building risk solutions around clients’ financial and liquidity needs rather than relying on standardized compensation frameworks.
Based in Miami, the team will focus on designing and building weather-based solutions tailored for energy producers, utilities and large industrial customers.
Additionally, the team will leverage proprietary analytics and modeling, data-driven triggers, and clearly defined payment mechanisms.
Across Latin America, weather risk remains a significant and often unmanaged risk for energy companies and other weather-sensitive industries, as traditional insurance struggles to effectively cover high-frequency, non-catastrophic weather fluctuations, the broker explained.
To address this issue, parametric structures and structured weather risk transfer solutions provide a more direct, transparent and capital-efficient complement to traditional insurance.
To strengthen this initiative, Augment Risk has appointed Sergio Isaza and Andres Cardona as weather risk advisors to its Latin America platform. The pair have extensive experience in weather risk, energy markets, risk management, finance and ESG, including previous advisory work on weather-related risk structures for energy and infrastructure clients in Latin America.
The pair will play a central role in building and scaling the platform, reinforcing the broker’s commitment to capital markets expertise through experienced hands-on practitioners who understand the technical and commercial realities of weather markets.
Alejandro Solorzano, associate partner in parametrics at Augment Risk, commented: “As climate change continues to drive earnings volatility across Latin America, Augment Risk intends to be a long-term partner for clients seeking rigorous, specialized weather risk solutions.
“Expanding into this area is a natural extension of our Capital First philosophy, applying structured risk transfer and capital markets thinking to weather risk in real operations, particularly for industries that require certainty, speed and clarity.”
