(4) Loss and Loss Expense Reserves:

Activity in the reserves for losses and loss expenses for the six months ended June 30, 2018 and 2017 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated.

	2018			2017
Reserves, gross of reinsurance
recoverable, at the beginning of the year	$	680,274		$	576,330
Reinsurance recoverable on unpaid losses at the beginning of the year		308,143			251,563
Reserves at the beginning of the year		372,131			324,767

Provision for losses and loss expenses:
Claims occurring during the current period		151,462			103,666
Claims occurring during prior periods		(1,675	)		16,687
Total incurred		149,787			120,353

Loss and loss expense payments:
Claims occurring during the current period		28,903			23,548
Claims occurring during prior periods		88,965			84,628
Total paid		117,868			108,176
Reserves at the end of the period		404,050			336,944

Reinsurance recoverable on unpaid losses at the end of the period		312,231			290,781
Reserves, gross of reinsurance
recoverable, at the end of the period	$	716,281		$	627,725

The table above shows a roll-forward of loss and loss expense reserves from the prior year end to the current balance sheet date with comparable prior year information. Losses incurred from claims occurring during prior years reflect the development from prior accident years, composed of individual claim savings and deficiencies which, in the aggregate, have resulted from the settlement of claims at amounts higher or lower than previously reserved and from changes in estimates of losses incurred but not reported.

The $1,675 prior accident year savings that developed during the six months ended June 30, 2018 was largely due to favorable loss development in workers' compensation and independent contractor coverages. This 2018 savings compares to a deficiency of $16,687 for the six months ended June 30, 2017 related to prior year reserve strengthening due to unfavorable development from prior year claims, particularly from infrequent, but severe loss events during the second quarter of 2017.