Liability for Unpaid Claims

12 Months Ended

Dec. 31, 2023

Note 8—Liability for Unpaid Claims

Activity in the liability for unpaid health claims is summarized as follows:


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of period	$	184,286	$	173,737	$	168,582
Less reinsurance recoverables	(2,084)		(2,628)		(3,124)
Net balance at January 1,	182,202		171,109		165,458
Incurred related to:
Current year	697,521		676,189		638,134
Prior years	(4,853)		(15,631)		(22,477)
Total incurred	692,668		660,558		615,657
Paid related to:
Current year	535,971		517,855		487,096
Prior years	146,247		131,610		122,910
Total paid	682,218		649,465		610,006

Net balance at December 31,	192,652		182,202		171,109
Plus reinsurance recoverables	2,157		2,084		2,628
Balance at end of period	$	194,809	$	184,286	$	173,737

At the end of each period, the liability for unpaid health claims includes an estimate of claims incurred but not yet reported to the Company. Such estimates are updated regularly based upon the Company’s most recent claims data with recognition of emerging experience trends. Due to the nature of the Company’s health business, the payment lags are relatively short and most claims are fully paid within a year from the time incurred. Fluctuations in claims experience can lead to either over or under estimation of the liability for any given year. The difference between the estimate made at the end of the prior period and the actual experience during the period is reflected above under the caption "Incurred related to: Prior years."

Below is the reconciliation of the liability of "Policy claims and other benefits payable" in the Consolidated Balance Sheets.


	December 31,
	2023		2022
Policy claims and other benefits payable:
Life insurance	$	320,066	$	325,070
Health insurance	194,809		184,286
Total	$	514,875	$	509,356