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Historical Loss And LAE Development | 6 Months Ended
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Jun. 30, 2022
Historical Loss And L A E Development Disclosure [Abstract] |
Historical Loss And LAE Development | 3. HISTORICAL LOSS AND LAE DEVELOPMENT The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first six months of 2022 and 2021:
|  | For the Six Months |
|  | Ended June 30, |
(in thousands) |  | 2022 |  |  | 2021 |
Unpaid losses and LAE at beginning of year |  |  |  |  |  |  |  |
Gross |  | $ | 2,043,555 |  |  | $ | 1,750,049 |
Ceded |  |  | (608,086 | ) |  |  | (443,729 | )
Net |  | $ | 1,435,469 |  |  | $ | 1,306,320 |
Increase (decrease) in incurred losses and LAE |  |  |  |  |  |  |  |
Current accident year |  | $ | 293,158 |  |  | $ | 279,380 |
Prior accident years |  |  | (69,720 | ) |  |  | (67,462 | )
Total incurred |  | $ | 223,438 |  |  | $ | 211,918 |
Loss and LAE payments for claims incurred |  |  |  |  |  |  |  |
Current accident year |  | $ | (21,628 | ) |  | $ | (28,991 | )
Prior accident years |  |  | (153,490 | ) |  |  | (116,723 | )
Total paid |  | $ | (175,118 | ) |  | $ | (145,714 | )
Net unpaid losses and LAE at June 30 |  | $ | 1,483,789 |  |  | $ | 1,372,524 |
Unpaid losses and LAE at June 30 |  |  |  |  |  |  |  |
Gross |  | $ | 2,150,519 |  |  | $ | 1,917,609 |
Ceded |  |  | (666,730 | ) |  |  | (545,085 | )
Net |  | $ | 1,483,789 |  |  | $ | 1,372,524 |
For the first six months of 2022, incurred losses and LAE included $69.7 million of favorable development on prior years’ loss reserves. General liability, professional services, transportation, marine and surety were drivers of the favorable development. No products experienced significant adverse development. For the first six months of 2021, incurred losses and LAE included $67.5 million of favorable development on prior years’ loss reserves. General liability, transportation, professional services, small commercial, personal umbrella and marine were drivers of the favorable development. No products experienced significant adverse development. Actuarial models base future emergence on historical experience, with adjustments for current trends, and the appropriateness of these assumptions involved more uncertainty as of June 30, 2022. We expect the timing of loss emergence and ultimate loss ratios for certain coverages we underwrite will be affected as a result of COVID-19 and the related economic impact. The industry is experiencing new issues, including the postponement of civil court cases, the extension of various statutes of limitations and changes in settlement trends. Our recorded reserves include consideration of these factors, but the duration and degree to which these issues persist, along with potential legislative, regulatory or judicial actions, could result in loss reserve deficiencies and reduce earnings in future periods.

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- Definition Historical loss and LAE development disclosure. + References No definition available. + Details
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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI http://asc.fasb.org/subtopic&trid=2560295 + Details
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