I didn't personally implement this change but I was involved in the initial design. The primary reason is to make it easier for new players or players starting on new shards to be able to afford insurance. We also wanted to make it easier to understand the system and provide the player with a more accessible way to see what is insured.
The are other benefits to these changes. Such as pvping in Fel should be both more profitable and cheaper to participate in at the same time.
These changes will not be going live until they are completely ready. We will need your help to get them to this point. Please try to get on the test center, insure some items, and get yourself killed in new and interesting ways. As usual, report any bugs you find to
[email protected]. Thanks!