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Insurers--smarting from past losses--are showing an increasing amount of restraint in underwriting environmental risks. Buyers can expect shorter terms and more fine print in the terms and conditions. Science and societal pressures are partly to blame.

In the field of environmental insurance, AIG was a trailblazer. Tom Slattery, a regular contributor to Risk & Insurance, interviewed four executives of AIG Environmental to discuss its history and development. Participating were Joe Boren, president and CEO; John O'Brien and Ken Cornell, both executive vice presidents; and Peter Gilbertson, director of marketing. Boren and Cornell have been in the field for 25 years. Today, environmental insurance has become much less of a niche product than it once was. Here's an abridged version of their conversation.