Losses and Loss Adjustment Expenses Incurred and Paid

12 Months Ended

Dec. 31, 2015

Losses and Loss Adjustment Expenses Incurred and Paid

9.	Losses and Loss Adjustment Expenses Incurred and Paid

Information regarding the reserve for unpaid losses and loss adjustment expenses (“LAE”) is as follows (in thousands).

	Year Ended December 31,
	2015			2014			2013
Liability for unpaid losses and LAE at beginning of year, gross	$	96,613		$	84,286		$	79,260
Reinsurance balances receivable		(362	)		(305	)		(260	)
Liability for unpaid losses and LAE at beginning of year, net		96,251			83,981			79,000
Add: Provision for lossses and LAE:
Current year		218,186			166,185			145,877
Prior year		845			(4,883	)		(3,038	)
Net losses and LAE incurred		219,031			161,302			142,839
Less: Losses and LAE paid:
Current year		129,216			98,442			88,726
Prior year		64,459			50,590			49,132
Net losses and LAE paid		193,675			149,032			137,858
Liability for unpaid losses and LAE at end of year, net		121,607			96,251			83,981
Reinsurance balances receivable		464			362			305
Liability for unpaid losses and LAE at end of year, gross	$	122,071		$	96,613		$	84,286

The unfavorable change in the estimate of unpaid losses and loss adjustment expenses of $0.8 million for the year ended December 31, 2015 was largely the result of an increase in bodily injury loss adjustment expenses (primarily outside legal costs) driven by the overall increase in claim frequency.

The favorable change in the estimate of unpaid losses and loss adjustment expenses of $4.8 million for the year ended December 31, 2014 was primarily related to bodily injury claims occurring in accident years 2010 through 2013.

The favorable change in the estimate of unpaid losses and loss adjustment expenses of $3.0 million for the year ended December 31, 2013 was primarily related to bodily injury claims occurring in accent years 2010 to 2012, partially offset by unfavorable loss and loss adjustment expense development on Florida personal injury protection claims.