POLICY LIABILITIES

3 Months Ended

Mar. 31, 2019

Changes in the liability for unpaid policy claims were as follows:



	Three Months Ended March 31,
(In millions)		2019			2018
Unpaid supplemental health claims, beginning of period		$	3,952		$	3,884
Less reinsurance recoverables		29			30
Net balance, beginning of period		3,923			3,854
Add claims incurred during the period related to:
Current year		1,825			1,842
Prior years		(167		)	(192		)
Total incurred		1,658			1,650
Less claims paid during the period on claims incurred during:
Current year		506			518
Prior years		1,137			1,116
Total paid		1,643			1,634
Effect of foreign exchange rate changes on unpaid claims		0			142
Net balance, end of period		3,938			4,012
Add reinsurance recoverables		29			31
Unpaid supplemental health claims, end of period		3,967			4,043
Unpaid life claims, end of period		658			587
Total liability for unpaid policy claims		$	4,625		$	4,630

The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates. The favorable claims development of $167 million for the three-month period ended March 31, 2019 comprises approximately $91 million from Japan, which represents approximately 54% of the total. The impact of foreign currency exchange for the period December 31, 2018 to March 31, 2019 was immaterial.

The Company has experienced continued favorable claim trends in 2019 for its core health products in Japan. The Company's experience in Japan related to the average length of stay in the hospital for cancer treatment has shown continued decline in the current period. In addition, cancer treatment patterns in Japan are continuing to be influenced by significant advances in early-detection techniques and by the increased use of pathological diagnosis rather than clinical exams. Additionally, follow-up radiation and chemotherapy treatments are occurring more often on an outpatient basis. Such changes in treatment not only increase the quality of life and initial outcomes for the patients, but also decrease the average length of each hospital stay, resulting in favorable claims development.

The remainder of the favorable claims development related to prior years for the three-month period ended March 31, 2019, reflects Aflac U.S. favorable claims experience compared to previous estimates, primarily in the cancer and accident lines of business.