Insert multiple lines of text before specific line using Bash

This should work:

sed -i '/Line to insert after/ i Line one to insert \
second new line to insert \
third new line to insert' file

For anything other than simple substitutions on individual lines, use awk instead of sed for simplicity, clarity, robustness, etc., etc.

To insert before a line:

awk '
/Line to insert before/ {
    print "Line one to insert"
    print "second new line to insert"
    print "third new line to insert"
}
{ print }
' /etc/directory/somefile.txt

To insert after a line:

awk '
{ print }
/Line to insert after/ {
    print "Line one to insert"
    print "second new line to insert"
    print "third new line to insert"
}
' /etc/directory/somefile.txt