Unpaid Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2018

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Unpaid Losses and Loss Adjustment Expenses

10. Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:

	Six Months Ended June 30,
	2018			2017
Balance at beginning of period:
Liability for unpaid losses and loss adjustment expense	$	45,890		$	59,632
Reinsurance recoverables on losses		4,128			7,192
Net balance at beginning of period		41,762			52,440
Incurred related to:
Current year		60,152			58,917
Prior years		(582	)		(4,966	)
Total incurred		59,570			53,951
Paid related to:
Current year		25,220			23,782
Prior years		16,337			20,382
Total paid		41,557			44,164
Balance at end of period:
Liability for unpaid losses and loss adjustment expense		63,376			72,619
Reinsurance recoverables on losses		3,601			10,392
Net balance at end of period	$	59,775		$	62,227

The prior years’ provision for unpaid losses and loss adjustment expenses decreased by $582 during the six months ended June 30, 2018, compared to a decrease of $4,966 during the six months ended June 30, 2017. Increases and decreases are generally the result of ongoing analysis of loss development trends. As additional information becomes known regarding individual claims, original estimates are increased or decreased accordingly.