Catastrophe (CAT) models are widely used by insurers, governments, and financial institutions to estimate the impact of natural hazards. However, as climate extremes become more frequent, severe, and nonlinear, the assumptions and parameters underpinning traditional CAT models are increasingly being challenged. This question explores the technical, methodological, and systemic limitations of existing CAT models when applied to extreme climate scenarios such as compound drought–heatwave events, record-breaking storms, or slow-onset disasters. Contributors are invited to assess issues related to outdated hazard libraries, low temporal-spatial resolution, poor representation of socioeconomic vulnerability, reliance on historical baselines, and insufficient integration with climate projection data.