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Liability for Unpaid Claims and Claim Adjustment Expenses | 9 Months Ended
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Sep. 30, 2022
Insurance [Abstract] |
Liability for Unpaid Claims and Claim Adjustment Expenses | Liability for Unpaid Claims and Claim Adjustment Expenses Roll forward of Claim Liability The following table presents the activity in the net liability for unpaid losses and allocated loss adjustment expenses of short duration contracts for the following periods:
| For the Nine Months Ended September 30,
| 2022 |  | 2021
Policy liabilities and unpaid claims balance as of January 1, | $ | 331,703 |  |  | $ | 233,438 |
Less: liabilities of policy-holder account balances, gross | (801) |  |  | (5,419) |
Less: non-insurance warranty benefit claim liabilities | (10,785) |  |  | (30,664) |
Gross liabilities for unpaid losses and loss adjustment expenses | 320,117 |  |  | 197,355 |
Less: reinsurance recoverable on unpaid losses - short duration | (165,129) |  |  | (113,163) |
Less: other lines, gross | (576) |  |  | (247) |
Net balance as of January 1, short duration | 154,412 |  |  | 83,945 |
Incurred (short duration) related to: |  |  |
Current year | 265,277 |  |  | 176,644 |
Prior years | (2,205) |  |  | 3,866 |
Total incurred | 263,072 |  |  | 180,510 |
Paid (short duration) related to: |  |  |
Current year | 138,274 |  |  | 116,175 |
Prior years | 18,436 |  |  | 6,379 |
Total paid | 156,710 |  |  | 122,554 |
Net balance as of September 30, short duration | 260,774 |  |  | 141,901 |
Plus: reinsurance recoverable on unpaid losses - short duration | 248,418 |  |  | 154,513 |
Plus: other lines, gross | 157 |  |  | 397 |
Gross liabilities for unpaid losses and loss adjustment expenses | 509,349 |  |  | 296,811 |
Plus: liabilities of policy-holder account balances, gross | 2,715 |  |  | 1,690 |
Plus: non-insurance warranty benefit claim liabilities | 860 |  |  | 15,113 |
Policy liabilities and unpaid claims balance as of September 30, | $ | 512,924 |  |  | $ | 313,614 |
The following schedule reconciles the total short duration contracts per the table above to the amount of total losses incurred as presented in the condensed consolidated statements of operations, excluding the amount for member benefit claims:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Short duration incurred | $ | 97,501 |  |  | $ | 61,061 |  |  | $ | 263,072 |  |  | $ | 180,510 |  |  |
Other lines incurred | (36) |  |  | 10 |  |  | 327 |  |  | 55 |  |  |
Unallocated loss adjustment expenses | 362 |  |  | 181 |  |  | 657 |  |  | 679 |  |  |
Total losses incurred | $ | 97,827 |  |  | $ | 61,252 |  |  | $ | 264,056 |  |  | $ | 181,244 |  |  |
During the nine months ended September 30, 2022, and 2021, the Company experienced a decrease in prior year development of $2,205, primarily as a result of lower-than-expected claim severity in its commercial lines business. During the nine months ended September 30, 2021, the Company experienced an increase in prior year development of $3,866, primarily as a result of higher-than-expected claim severity from business written by a small group of producers of our personal and commercial lines of business. Management considers the prior year development for each of these years to be insignificant when considered in the context of our annual earned premiums, net as well as our net losses and loss adjustment expenses and member benefit claims expenses. We analyze our development on a quarterly basis and given the short duration nature of our products, favorable or adverse development emerges quickly and allows for timely reserve strengthening, if necessary, or modifications to our product pricing or offerings. Based upon our internal analysis and our review of the statement of actuarial opinions provided by our actuarial consultants, we believe that the amounts recorded for policy liabilities and unpaid claims reasonably represent the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date.

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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 https://asc.fasb.org/subtopic&trid=2560295 + Details
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