Liability for Unpaid Claims

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Liability for Unpaid Claims

Note 7—Liability for Unpaid ClaimsActivity in the liability for unpaid health claims is summarized as follows:

	Year Ended December 31,
	2021		2020		2019
Balance at beginning of period	$	162,261	$	163,808	$	154,528
Incurred related to:
Current year	638,054		584,936		612,305
Prior years	(22,477)		(14,829)		(1,188)
Total incurred	615,577		570,107		611,117
Paid related to:
Current year	487,096		442,127		470,426
Prior years	122,910		129,527		131,411
Total paid	610,006		571,654		601,837
Balance at end of period	$	167,832	$	162,261	$	163,808

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.

	December 31,
	2021		2020
Policy claims and other benefits payable:
Life insurance	$	245,108	$	237,246
Health insurance	167,832		162,261
Total	$	412,940	$	399,507