The combining of conventional insurance with financial losses in a single programme, as in multi-line insurance. Risks can be priced on a portfolio basis – and therefore cover may be available for risks that, in isolation, would be too costly to insure. The financial losses are based on falls in a specified index and not the actual portfolio.
Insurance Encyclopedia
Blended insurance program
A long-term program that combines many types of insurance including finite risk, reinsurance, and traditional insurance.
Blended payment rate
Combination of federal and local area wage indexes that was used to phase in a prospective payment system.
Blended rates
Group mortality rates based partially on a group’s experience and partially on manual rates. These rates are used to establish the right group insurance premium rates for intermediate-size groups.
Blended reinsurance
Reinsurance that integrates in a single contract traditional risk transfer and financial reinsurance or finite risk reinsurance coverage components. An example would be a contract that combines catastrophe coverage on a per occurrence basis with casualty coverage having an aggregate limit and aggregate retention.
Blending (Life Insurance)
The act of merging a term life insurance policy with an ordinary life insurance policy.