Raincoat, a Puerto Rico-based startup that makes white-label insurance software, raised $4.5 million in seed funding, the company tells Axios.

Why it matters: Traditional insurance providers aren't set up to handle the waves of climate change–caused weather events, and insurtech startups are eager to experiment with nontraditional models.

Details: Anthemis Group led the all-equity round that closed in June. Raincoat CEO Jonathan Gonzalez declined to disclose the round's valuation.

How it works: Raincoat makes modeling software for parametric insurance products, which pays out a predetermined amount should a qualifying event occur.

Yes, and: Gonzalez says that he sees parametric models replacing traditional insurance policies as natural disasters become more common and high volume events overwhelm traditional insurance providers that don't take other metrics like quality of life or lost earnings into account.