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Reserves for Claims | 12 Months Ended
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Dec. 31, 2022
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] |
Reserves for Claims | Reserve for Claims Changes in the reserve for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written:
(in thousands) | 2022 |  | 2021
Balance, beginning of period | $ | 36,754 |  |  | $ | 33,584 |
Provision related to: |  |  |
Current year | 9,817 |  |  | 11,450 |
Prior years | (5,562) |  |  | (5,764) |
Total provision charged to operations | 4,255 |  |  | 5,686 |
Claims paid, net of recoveries, related to: |  |  |
Current year | (333) |  |  | (146) |
Prior years | (3,484) |  |  | (2,370) |
Total claims paid, net of recoveries | (3,817) |  |  | (2,516) |
Balance, end of year | $ | 37,192 |  |  | $ | 36,754 |
The Company continually refines its reserve estimates as current loss experience develops and more credible data emerges. Movements in the reserve related to prior periods were primarily the result of changes to estimates to better reflect the latest reported loss data. The decrease in the provision for claims in 2022, compared to 2021, is primarily related to lower premium levels in the current year period. Due to variances between actual and expected loss payments, loss development is subject to significant variability. The Company does not recognize claim recoveries until an actual payment has been received by the Company. The Company realized claim recoveries of approximately $1.0 million and $793 thousand during 2022 and 2021, respectively. The provision for claims as a percentage of net premiums written was 1.7% and 2.1% in 2022 and 2021, respectively. A large claim is defined as a claim with incurred losses exceeding $500 thousand. Due to the small volume of large claims, the long-tail nature of title insurance claims and the inherent uncertainty in loss emergence patterns, large claim activity can vary significantly between policy years. The estimated development of large claims by policy year is therefore subject to significant changes as experience develops. A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows:
(in thousands, except percentages) | 2022 |  | % |  | 2021 |  | %
Known title claims | $ | 3,250 |  |  | 8.7 |  |  | $ | 3,317 |  |  | 9.0 |
IBNR | 33,942 |  |  | 91.3 |  |  | 33,437 |  |  | 91.0 |
Total reserve for claims | $ | 37,192 |  |  | 100.0 |  |  | $ | 36,754 |  |  | 100.0 |
In management’s opinion, the reserve for claims is adequate to cover claims losses which might result from pending and future claims.

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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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