POLICY AND CLAIM RESERVES (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Policy and Claim Reserves

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


($ in thousands)	Year ended December 31,
		2020		2019
Summary of claims and claim adjustment expense reserves
Balance, beginning of year		$	7,199	$	8,208
Less reinsurance recoverable on unpaid losses		249		1,384
Net balances at beginning of year		6,950		6,824
Net losses:
Provision for claims and claim adjustment expenses for claims arising in current year		50,112		35,312
Estimated claims and claim adjustment expenses for claims arising in prior years		(687)		(1,333)
Total increases		49,425		33,979
Claims and claim adjustment expense payments for claims arising in:
Current year		44,816		30,179
Prior years		4,703		3,674
Total payments		49,519		33,853
Net balance at end of period		6,856		6,950
Plus reinsurance recoverable on unpaid losses		3,321		249
Claims and claim adjustment expense reserves at end of period		$	10,177	$	7,199

Short-duration Insurance Contracts, Claims Development


	For the Years Ended December 31,
	20111		20121		20131		20141		20151		20161		20171		20181		2019		2020
	Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance

	($ in thousands)
Years																					IBNR Reserves Dec. 31, 2020		Cumulative Number of Reported Claims
2011	$	35,203	$	33,957	$	34,233	$	34,711	$	34,806	$	34,650	$	34,658	$	34,663	$	34,751	$	34,706	$	—	8,132
2012	—		29,959		30,190		30,402		30,091		29,948		29,885		29,827		29,834		29,830		—		5,205
2013	—		—		27,436		27,147		27,076		27,023		27,191		27,236		27,022		27,015		5		5,214
2014	—		—		—		25,929		26,422		26,290		26,225		26,130		26,096		26,086		—		4,756
2015	—		—		—		—		31,484		30,861		30,360		30,890		30,960		31,033		376		5,853
2016	—		—		—		—		—		36,287		35,343		35,399		35,144		35,151		6		5,193
2017	—		—		—		—		—		—		40,210		38,958		38,642		38,675		6		5,331
2018	—		—		—		—		—		—		—		37,079		36,195		36,229		213		4,799
2019	—		—		—		—		—		—		—		—		35,929		35,199		421		4,835
2020	—		—		—		—		—		—		—		—		—		50,722		3,137		6,125
																	Total		$	344,646

1Required supplementary information (unaudited)


	Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance

	($ in thousands)
Years	20111		20121		20131		20141		20151		20161		20171		20181		2019		2020
2011	$	31,488	$	33,080	$	33,484	$	34,167	$	34,622	$	34,621	$	34,641	$	34,647	$	34,650	$	34,703
2012	—		26,162		29,135		29,614		29,765		29,834		29,835		29,823		29,824		29,825
2013	—		—		24,157		26,114		26,487		26,661		26,788		26,976		27,011		27,006
2014	—		—		—		22,844		25,461		25,800		26,033		26,095		26,094		26,086
2015	—		—		—		—		25,923		30,066		30,190		30,296		30,366		30,492
2016	—		—		—		—		—		31,893		34,722		35,030		35,139		35,131
2017	—		—		—		—		—		—		35,209		38,245		38,499		38,659
2018	—		—		—		—		—		—		—		32,456		35,543		35,924
2019	—		—		—		—		—		—		—		—		30,796		34,593
2020	—		—		—		—		—		—		—		—		—		45,423
																	Total		$	337,842
			All outstanding liabilities before 2010, net of reinsurance																52
			Liabilities for claims and claim adjustment expenses, net of reinsurance																$	6,856

1Required supplementary information (unaudited)

The cumulative number of reported claims presented above is reported on a per claimant basis.

Cumulative incurred and paid claims over the last three years, along with annual percentage payouts related to accident and health claims, is as follows:


	For the Years Ended December 31,
	20181		2019		2020
	Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in thousands)


Years							IBNR Reserves Dec. 31, 2020		Cumulative Number of Reported Claims
2018	$	1,037	$	1,120	$	1,020	$	—	1,489
2019			935		968		—		1,454
2020					818		426		805

1Required supplementary information (unaudited)


	Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance ($ in thousands)


Years	20181		2019		2020
2018	$	747	$	991	$	1,011
2019			614		917
2020					451

1Required supplementary information (unaudited)


	Average Annual Percentage Payout of Incurred Claims by Age
	Required supplementary information (unaudited)
Years	1	2	3
	63.9%	32.0%	3.2%

Short-duration Insurance Contracts, Schedule of Historical Claims Duration


	Average Annual Percentage Payout of Incurred Claims by Age (in Years), Net of Reinsurance
	(Required Supplementary Information - Unaudited)
Years	1		2		3		4		5		6		7		8		9		10
	88.7	%	8.8	%	1.0	%	0.6	%	0.3	%	0.1	%	0.4	%	—	%	—	%	0.1	%

Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability


Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses

($ in thousands)	December 31, 2020		December 31, 2019
Net outstanding liabilities
Homeowners' insurance	$	2,359	$	2,651
Dwelling fire insurance	2,877		2,623
Other Liability insurance	1,618		1,667
Other short-duration insurance lines	2		9
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance	6,856		6,950

Reinsurance recoverable on unpaid claims
Homeowners' insurance	2,620		203
Dwelling fire insurance	700		46
Other Liability insurance	—		—
Other short-duration insurance lines	1		—
Total reinsurance recoverable on unpaid claims	3,321		249

Insurance lines other than short-duration	—		—
Unallocated claims adjustment expenses	—		—
Other	—		—
	—		—

Total gross liability for unpaid claims and claim adjustment expense	$	10,177	$	7,199