The most probable reason is that right after a catastrophe it is most likely that a similar catastrophe will not occur again for several years and that fact is borne out by loss statistics on this.

As to the length of term of these bonds I cannot find any concrete information and it looks like they may run forever. However, some do describe specific risks they are designed to insure for in the 3-5 year range.

http://www.artemis.bm/deal_directory/vit...

http://www.artemis.bm/deal_directory/que...

http://www.artemis.bm/deal_directory/

http://www.artemis.bm/blog/2013/12/09/gr...

" The market grew to $1–2 billion of issuance per year for the 1998–2001 period, and over $2 billion per year following 9-11. Issuance doubled again to a run rate of approximately $4 billion on an annual basis in 2006 following Hurricane Katrina " -- Wikipedia

According to my understanding, investors generate healthy returns when a catastrophe does NOT occur, so the last thing I would expect is that the market would grow after the occurrence of a catastrophe. Wouldn't it shrink instead? Is it the heavy advertising of insurance companies that pushes people to invest in such bonds?

BQ: How long does it typically take a CAT bond to mature? A rough estimate on that, or an average is enough for an answer. Thanks in advance.