(4) Loss and Loss Expense Reserves:

Activity in the reserves for losses and loss expenses for the three months ended March 31, 2020 and 2019 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated.

	Three Months Ended
	March 31
	2020			2019
Reserves, gross of reinsurance recoverable, at the beginning of the year	$	988,305		$	865,339
Reinsurance recoverable on unpaid losses at the beginning of the year		398,305			375,935
Reserves at the beginning of the year		590,000			489,404

Provision for losses and loss expenses:
Claims occurring during the current period		81,839			88,180
Claims occurring during prior periods		(8	)		(1,058	)
Total incurred		81,831			87,122

Loss and loss expense payments:
Claims occurring during the current period		8,169			8,708
Claims occurring during prior periods		61,812			56,747
Total paid		69,981			65,455
Reserves at the end of the period		601,850			511,071

Reinsurance recoverable on unpaid losses at the end of the period		399,749			383,150
Reserves, gross of reinsurance recoverable, at the end of the period	$	1,001,599		$	894,221

The $8 prior accident year favorable development during the three months ended March 31, 2020 was primarily due to favorable loss development in independent contractor coverages. This savings compares to a prior accident year savings of $1,058 for the three months ended March 31, 2019, which related to favorable loss development in workers' compensation and independent contractor coverages. 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 as part of the normal reserving process.