AIG Units Notch Win in Hawaii Court Over Climate Change Coverage

Greenhouse gases fall under pollution exclusions in several policies issued by American International Group Inc. units, Hawaii’s high court said, likely closing the door on insurance coverage for climate-change related claims against a gas company.

The decision marks one of the first appellate rulings in an insurance dispute over climate change-related claims.

Two Hawaiian local government lawsuits against a Sunoco LP subsidiary alleged that greenhouse gas emissions related to its fossil fuel products caused climate change-related damages. Aloha Petroleum Ltd. sued AIG subsidiaries National Union Fire Insurance Co. and American Home Assurance Co. in the US District Court for the ...