What does the term 'liberalization' in insurance refer to?

Liberalization in insurance refers specifically to the practice of extending coverage under an insurance policy without requiring the insured to pay an additional premium. This term signifies a beneficial shift for policyholders, as it allows them to receive broader coverage for certain risks or losses, often in response to changing circumstances or improved understanding of risks.

When an insurer implements liberalization, it typically means that they are enhancing the terms of the existing policies to be more favorable, which can provide greater peace of mind to the policyholder. This change occurs without requiring policyholders to incur any extra costs, making it an attractive feature for those looking to get more value out of their insurance coverage.

In the context of insurance practices, liberalization is often viewed as a way to respond to market demands or to adapt to evolving risks, further demonstrating the insurer's commitment to customer satisfaction and their recognition of the need for competitive offerings in the marketplace.