(4) Loss and Loss Expense Reserves:

Activity in the reserves for losses and loss expenses for the nine months ended September 30, 2017 and 2016 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated.

	2017		2016
Reserves, gross of reinsurance
recoverable, at the beginning of the year	$	576,330	$	513,596
Reinsurance recoverable on unpaid losses at the beginning of the year		251,563		211,843
Reserves at the beginning of the year		324,767		301,753

Provision for losses and loss expenses:
Claims occurring during the current period		164,546		129,404
Claims occurring during prior periods		16,480		8,712
Total incurred		181,026		138,116

Loss and loss expense payments:
Claims occurring during the current period		41,616		30,932
Claims occurring during prior periods		109,616		81,427
Total paid		151,232		112,359
Reserves at the end of the period		354,561		327,510

Reinsurance recoverable on unpaid losses at the end of the period		301,445		238,049
Reserves, gross of reinsurance
recoverable, at the end of the period	$	656,006	$	565,559

The table above shows a roll-forward of loss and loss expense reserves from the prior year end to the current balance sheet date with comparable prior year information. Losses incurred from claims occurring during prior years reflects the development from prior accident years, composed of individual claim savings and deficiencies which, in the aggregate, have resulted from the settlement of claims at amounts higher or lower than previously reserved and from changes in estimates of losses incurred but not reported.

The $16,480 prior accident year deficiency that developed during the first nine months of 2017 was largely due to infrequent, but severe, transportation losses that occurred primarily during the first six months of 2017. This 2017 deficiency compares to a deficiency of $8,712 for the first nine months of 2016 that arose due mostly to management's review of reserve positions related to discontinued lines.