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Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended
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Dec. 31, 2021
Insurance Loss Reserves [Abstract] |
Summary of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustments Expenses, Net of Reinsurance | The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2017 to 2020, is presented as supplementary information and is unaudited.
|  | As of December 31, 2021
|  |  |  |  |  |  |  |  |  |  |  | Total of IBNR |  |
|  |  |  |  |  |  |  |  |  |  |  | Plus Expected |  |
Incurred Loss and Defense & Cost Containment Expenses, Net of Reinsurance |  | Development (Redundancy) |  | Cumulative Number
For the Years Ended December 31, |  | on Reported Claims |  | of Reported Claims
Accident Year |  | 2017 * |  | 2018 * |  | 2019 * |  | 2020 * |  | 2021 |  |  |  |
2017 |  | $ | 303,944 |  |  | $ | 334,734 |  |  | $ | 375,123 |  |  | $ | 404,673 |  |  | $ | 436,059 |  |  | $ | 358 |  |  | 133,095 |
2018 |  |  |  | 334,368 |  |  | 335,946 |  |  | 348,792 |  |  | 346,785 |  |  | (8,241) |  |  | 54,440 |
2019 |  |  |  |  |  | 446,419 |  |  | 452,029 |  |  | 467,198 |  |  | (2,602) |  |  | 47,636 |
2020 |  |  |  |  |  |  |  | 617,795 |  |  | 637,764 |  |  | 11,850 |  |  | 80,604 |
2021 |  |  |  |  |  |  |  |  |  | 641,679 |  |  | 127,765 |  |  | 59,383 |
|  |  |  |  |  |  |  | Total |  | $ | 2,529,485 |  |  |  |  |
Cumulative Paid Loss and Defense & Cost Containment Expenses, Net of Reinsurance
For the Years Ended December 31,
Accident Year |  | 2017 * |  | 2018 * |  | 2019 * |  | 2020 * |  | 2021
2017 |  | $ | 205,200 |  |  | $ | 328,105 |  |  | $ | 365,588 |  |  | $ | 397,509 |  |  | $ | 434,195 |
2018 |  |  |  | 253,008 |  |  | 327,310 |  |  | 348,225 |  |  | 353,506 |
2019 |  |  |  |  |  | 335,991 |  |  | 446,997 |  |  | 463,924 |
2020 |  |  |  |  |  |  |  | 452,560 |  |  | 604,201 |
2021 |  |  |  |  |  |  |  |  |  | 461,709 |
|  |  |  |  |  |  |  | Total |  | $ | 2,317,535 |
All outstanding liabilities before 2017, net of reinsurance |  | (4,767) |
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance |  | $ | 207,183 |
* Presented as unaudited required supplementary information.
Supplementary Information About Average Historical Claims Duration | Set forth is the supplementary information about average historical claims duration as of December 31, 2021:
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years |  | 1 |  | 2 |  | 3 |  | 4 |  | 5
|  | 56.4 | % |  | 20.4 | % |  | 11.1 | % |  | 6.0 | % |  | 3.2 | %
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE | Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2021 (in thousands):
| December 31, 2021
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ | 207,183 |
Reinsurance recoverable on unpaid claims | 115,860 |
Liabilities for adjusting and other claim payments | 23,173 |
Total gross liability for unpaid claims and claim adjustment expense | $ | 346,216 |
Change in Liability for Unpaid Losses and LAE | Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):
|  | Years Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Balance at beginning of year |  | $ | 322,465 |  |  | $ | 267,760 |  |  | $ | 472,829 |
Less: Reinsurance recoverable |  | (119,522) |  |  | (123,221) |  |  | (393,365) |
Net balance at beginning of period |  | 202,943 |  |  | 144,539 |  |  | 79,464 |
Incurred (recovered) related to: |  |  |  |  |  |
Current year |  | 724,768 |  |  | 700,473 |  |  | 515,338 |
Prior years |  | 54,437 |  |  | 58,337 |  |  | 88,068 |
Total incurred |  | 779,205 |  |  | 758,810 |  |  | 603,406 |
Paid related to: |  |  |  |  |  |
Current year |  | 526,695 |  |  | 513,308 |  |  | 391,161 |
Prior years |  | 225,097 |  |  | 187,098 |  |  | 147,170 |
Total paid |  | 751,792 |  |  | 700,406 |  |  | 538,331 |
Net balance at end of period |  | 230,356 |  |  | 202,943 |  |  | 144,539 |
Plus: Reinsurance recoverable |  | 115,860 |  |  | 119,522 |  |  | 123,221 |
Balance at end of year |  | $ | 346,216 |  |  | $ | 322,465 |  |  | $ | 267,760 |

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- Definition Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=116884095&loc=d3e14764-158437 + Details
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- Definition Tabular disclosure of undiscounted information about claims development by accident year for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671311-158438 + Details
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- Definition Tabular disclosure for the reconciliation of claims development to the liability for unpaid claims and claim adjustment expense for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671315-158438 + Details
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- Definition Tabular disclosure of average annual percentage payout of incurred claims by age, after reinsurance, for short-duration insurance contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 4G -URI http://asc.fasb.org/extlink&oid=116884468&loc=SL65671329-158438 + Details
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