Liability for Unpaid Claims

12 Months Ended

Dec. 31, 2024

Insurance [Abstract]

Liability for Unpaid Claims

Note 8—Liability for Unpaid Claims

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

	Year Ended December 31,
	2024		2023		2022
Balance at January 1,	$	194,809	$	184,286	$	173,737
Less reinsurance recoverables	(2,157)		(2,084)		(2,628)
Net balance at January 1,	192,652		182,202		171,109
Incurred related to:
Current year	767,076		697,521		676,189
Prior years	(10,460)		(4,853)		(15,631)
Total incurred	756,616		692,668		660,558
Paid related to:
Current year	587,473		535,971		517,855
Prior years	152,322		146,247		131,610
Total paid	739,795		682,218		649,465
Net balance at December 31,	209,473		192,652		182,202
Plus reinsurance recoverables	1,521		2,157		2,084
Balance at December 31,	$	210,994	$	194,809	$	184,286

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,
	2024		2023
Policy claims and other benefits payable:
Life insurance	$	321,838	$	320,066
Health insurance	210,994		194,809
Total	$	532,832	$	514,875