POLICY AND CLAIM RESERVES

The Company regularly updates its reserve estimates as new information becomes available and events occur that may impact the resolution of unsettled claims. Reserve estimation can be an inherently uncertain process and reserves estimates can be revised up or down depending on changes in circumstances. Changes in prior years' reserve estimates are reflected in the results of operations in the year such changes are determined.

The following table is a reconciliation of beginning and ending property and casualty reserve balances for claims and claim adjustment expense (dollars in thousands):



	Three months ended March 31,
	2019			2018
Summary of claims and claim adjustment expense reserves
Balance, beginning of year	$	8,208		$	7,075
Less reinsurance recoverable on unpaid losses	1,384			327
Net balances at beginning of year	6,824			6,748
Net losses:
Provision for claims and claim adjustment expenses for claims arising in current year	8,585			9,185
Estimated claims and claim adjustment expenses for claims arising in prior years	(604		)	(1,097		)
Total increases	7,981			8,088
Claims and claim adjustment expense payments for claims arising in:
Current year	5,596			5,527
Prior years	2,510			2,567
Total payments	8,106			8,094
Net balance at end of period	6,699			6,742
Plus reinsurance recoverable on unpaid losses	1,264			185
Claims and claim adjustment expense reserves at end of period	$	7,963		$	6,927

Claim and claim adjustment expense reserves at before reinsurance recoverable at March 31, 2019 was comparable to the same period last year. Reinsurance recoverable on unpaid losses was higher due to amounts recoverable on unpaid losses associated with Hurricane Michael. The estimate for claims arising in prior years was reduced $604,000 in 2019 (reduced $1,097,000 in 2018) due to favorable loss development during the year on claims arising in prior years.

Accident and Health Claim Reserves

The Company, through its life insurance subsidiary, underwrites a limited number of short duration accident and health contracts. These claims are typically settled in three years or less and the reserve for unpaid claims totaled $381,000 at March 31, 2019 ($358,000 at December 31, 2018). These claims are a component of policy and contract claims which totaled $872,000 at March 31, 2019 ($792,000 at December 31, 2018).