POLICY LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

Liability for Future Policy Benefits by Product Segment

The liability for future policy benefits as of December 31 consisted of the following:


	Liability Amounts				Interest Rate Assumptions
(In millions)	2020		2019
Health insurance
Japan	$	54,659	$	50,941	0.6 - 6.75	%
U.S.	8,834		8,646		3.0 - 8.0
Intercompany eliminations (1)	(545)		(532)		2.0
Life insurance
Japan	33,993		30,520		0.6 - 4.5
U.S.	842		760		2.5 - 6.0
Total	$	97,783	$	90,335

(1) Elimination entry necessary due to recapture of a portion of policy liabilities ceded externally, as a result of the reinsurance retrocession transaction as described in Note 8 of the Notes to the Consolidated Financial Statements

Schedule of Liability for Unpaid Claims Adjustment Expense

Changes in the liability for unpaid policy claims were as follows for the years ended December 31:


(In millions)	2020			2019			2018
Unpaid supplemental health claims, beginning of period		$	3,968		$	3,952		$	3,884
Less reinsurance recoverables		30			27			30
Net balance, beginning of period		3,938			3,925			3,854
Add claims incurred during the period related to:
Current year		7,179			7,216			7,101
Prior years		(540)			(552)			(563)
Total incurred		6,639			6,664			6,538
Less claims paid during the period on claims incurred during:
Current year		4,488			4,715			4,612
Prior years		1,966			1,965			1,898
Total paid		6,454			6,680			6,510
Effect of foreign exchange rate changes on unpaid claims		128			29			43
Zurich acquisition		99			0			0
Net balance, end of period		4,350			3,938			3,925
Add reinsurance recoverables		39			30			27
Unpaid supplemental health claims, end of period		4,389			3,968			3,952
Unpaid life claims, end of period		798			691			632
Total liability for unpaid policy claims		$	5,187		$	4,659		$	4,584