Autoliv is exposed to product liability and warranty claims in the event that the Company’s products fail to perform as represented and such failure results, or is alleged to result, in bodily injury, and/or property damage or other loss. The Company has reserves for product risks. Such reserves are related to product performance issues including recall, product liability and warranty issues. For further information, see Note 18.

The Company records liabilities for product related risks when probable claims are identified and when it is possible to reasonably estimate costs. Provisions for warranty claims are estimated based on prior experience, likely changes in performance of newer products, and the mix and volume of the products sold. The provisions are recorded on an accrual basis.

Pursuant to the Spin-off Agreements, Autoliv is also required to indemnify Veoneer for recalls related to certain qualified Electronics products. At December 31, 2018, the indemnification liabilities are approximately $12 million within accrued expenses on the Consolidated Balance Sheet. Insurance receivables are included within Other current assets in the Condensed Consolidated Balance Sheet.

The decrease in reserves in 2018 was mainly due to a lower recalls and higher cash payments. The decrease in reserves in 2017 was mainly due to a decrease in recall related issues and payments. A majority of the Company’s recall related issues as of December 31, 2018 are covered by insurance. Insurance receivables are included within other current assets in the Consolidated Balance Sheet. The decrease in reserves in 2017 was mainly due to a decrease in recall related issues and payments, while the increase in reserves in 2016 was mainly due to recall related issues. Cash payments in 2018 were mainly recall related. Cash payments in 2017 were mainly recall related, while 2016 were mainly warranty related.

The table below summarizes the change in the balance sheet position of the product related liabilities.

	2018			2017			2016
Reserve at beginning of the year	$	95.6		$	90.6		$	39.0
Change in reserve		20.6			32.2			68.1
Cash payments		(54.3	)		(29.4	)		(15.6	)
Translation difference		0.3			2.2			(0.9	)
Reserve at end of the year	$	62.2		$	95.6		$	90.6