Liability for Unpaid Claims

12 Months Ended

Dec. 31, 2019

Note 7—Liability for Unpaid Claims

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


	Year Ended December 31,
	2019		2018		2017
Balance at beginning of period	$	154,528	$	146,865	$	143,128
Incurred related to:
Current year	612,305		555,647		520,528
Prior years	(1,188)		(3,017)		(8,048)
Total incurred	611,117		552,630		512,480
Paid related to:
Current year	470,426		424,633		394,506
Prior years	131,411		120,334		114,237
Total paid	601,837		544,967		508,743
Balance at end of period	$	163,808	$	154,528	$	146,865

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.


	Year Ended December 31,
	2019		2018
Policy claims and other benefits payable:
Life insurance	$	201,594	$	196,298
Health insurance	163,808		154,528
Total	$	365,402	$	350,826