Multiline Insurance

DEFINITION of 'Multiline Insurance'

An insurance instrument used to bundle the risk exposures of multiple insurance obligations into one insurance contract. The risk exposures put together often are related, such as property and casualty risks.

BREAKING DOWN 'Multiline Insurance'

Many different varieties of multiline contracts exist, and they cover a wide range of risk exposures. The basis behind multiline contracts is that a firm often is exposed to a portfolio of risk, and instead of creating a portfolio of insurance policies to manage that risk, they should use a single multiline contract to manage the portfolio of risks. One insurance contract is then more efficient and less costly than many contracts.

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RELATED FAQS
  1. What is multiline insurance?

    The term "multiline insurance" can refer to multiline contracts and multiline insurers, so let's take a look at both variations. ... Read Answer >>
  2. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  3. What are some examples of when insurance bundling is a bad idea?

    Learn about situations where insurance bundling may not be a favorable option. Bundling insurance is often a good idea, but ... Read Answer >>
  4. What risks do I face when investing in the insurance sector?

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  5. How does the insurance sector work?

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  6. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
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