Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2020

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]

Roll-forward of Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses

The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses for the nine months ended September 30, 2020 and 2019 is as follows:

	Nine Months Ended September 30,
	2020			2019
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	81,448		$	72,612
Less: Reinsurance recoverable on unpaid losses		(18,339	)		(14,354	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		63,109			58,258

Incurred related to:
Current accident year		91,788			103,017
Prior accident year development ⁽¹⁾		(2,740	)⁽²⁾		(629	)
Total incurred		89,048			102,388

Paid related to:
Current accident year		57,676			66,682
Prior accident years		34,435			34,314
Total paid		92,111			100,996
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		60,046			59,650
Plus: Reinsurance recoverable on unpaid losses		18,111			16,611
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	78,157		$	76,261

(1)

In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.

(2)	Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected.

Reconciliation of Total Incurred Losses to Total Insurance Benefits and Losses

Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:

	Nine Months Ended September 30,
	2020			2019
Total incurred losses	$	89,048		$	102,388
Cash surrender value and matured endowments		962			1,020
Benefit reserve changes		(132	)		769
Total insurance benefits and losses incurred	$	89,878		$	104,177