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Policy Liabilities and Short Duration Contracts | 12 Months Ended
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Dec. 31, 2022
Insurance [Abstract] |
Policy Liabilities and Short Duration Contracts | Various assumptions used to determine the future policy benefit reserves of life insurance include valuation interest rates, mortality assumptions and withdrawals. The following table presents information on changes in the liability for life, accident and health and property policy and contract claims.
Years ended December 31, (In thousands) | 2022 |  | 2021 |  |
Policy claims payable: |  |  |  |  |
Balance at January 1 | $ | 14,590 |  |  | 13,206 |  |  |
Less: reinsurance recoverable | 2,469 |  |  | 3,012 |  |  |
Net balance at January 1 | 12,121 |  |  | 10,194 |  |  |
Add claims incurred, related to: |  |  |  |  |
Current year | 28,720 |  |  | 32,595 |  |  |
Prior years(1) | (46) |  |  | 1,052 |  |  |
| 28,674 |  |  | 33,647 |  |  |
Deduct claims paid, related to: |  |  |  |  |
Current year | 22,771 |  |  | 23,369 |  |  |
Prior years | 10,210 |  |  | 8,351 |  |  |
| 32,981 |  |  | 31,720 |  |  |
Net balance December 31 | 7,814 |  |  | 12,121 |  |  |
Plus: reinsurance recoverable | 2,070 |  |  | 2,469 |  |  |
Balance at December 31 | $ | 9,884 |  |  | 14,590 |  |  |
(1) This line is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A positive number implies an unfavorable result where claim resolutions were less favorable than assumed while a negative number implies a favorable result compared to assumptions. Our claim assumptions will vary from actual experience in any one period, either favorably or unfavorably.
SHORT DURATION CONTRACTS The Company's short duration contracts consist of credit life and credit disability in the Life Insurance segment and property insurance in the Home Service Insurance segment. The credit insurance lines are an immaterial part of short duration contracts so the following disclosures cover only the property insurance line of business in the Home Service Insurance segment. Special Property Insurance (Allied and Fire) The following table presents incurred claims development as of December 31, 2022, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts. This information is presented for the last five years as these claims rarely pay out over a longer period of time.
|  | As of December 31, 2022
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | Total of Incurred but Not Reported Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims
| For the Years Ended December 31,
($ In thousands) | 2018 | 2019 | 2020 | 2021 | 2022
Accident Year: | (Unaudited) |  |  |
2018 | $ | 1,542 |  | 1,427 |  | 1,432 |  | 1,436 |  | 1,430 |  | — |  | 496 |
2019 |  | 1,549 |  | 1,150 |  | 1,161 |  | 1,106 |  | 1 |  | 610 |
2020 |  |  | 2,598 |  | 2,670 |  | 2,577 |  | 2 |  | 2,397 |
2021 |  |  |  | 2,087 |  | 1,644 |  | 5 |  | 2,369 |
2022 |  |  |  |  | 1,213 |  | 177 |  | 313 |
Total |  |  |  |  | $ | 7,970 |  |  |
The following table presents paid claims development as of December 31, 2022, net of reinsurance.
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
| Years ended December 31,
(In thousands) | 2018 | 2019 | 2020 | 2021 | 2022
Accident Year: | (Unaudited) |
2018 | $ | 1,330 |  | 1,425 |  | 1,430 |  | 1,430 |  | 1,430 |
2019 |  | 1,166 |  | 1,071 |  | 1,091 |  | 1,105 |
2020 |  |  | 1,997 |  | 2,639 |  | 2,575 |
2021 |  |  |  | 1,435 |  | 1,639 |
2022 |  |  |  |  | 1,011 |
Total |  |  |  |  | $ | 7,760 |
All outstanding liabilities before 2018, net of reinsurance |  | $ | — |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 263 |
The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheets are as follows:
As of December 31, (In thousands) | 2022 |  | 2021
Net outstanding liabilities: |  |  |
Special property | $ | 263 |  |  | 796 |
Other short duration insurance lines | 158 |  |  | 253 |
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 421 |  |  | 1,049 |
Reinsurance recoverable on unpaid claims: |  |  |
Special property | 1,275 |  |  | 2,083 |
Other short duration insurance lines | 798 |  |  | 386 |
Total reinsurance recoverable on unpaid claims | 2,073 |  |  | 2,469 |
Insurance lines other than short duration | 7,390 |  |  | 11,072 |
Total gross liability for unpaid claims and claim adjustment expense | $ | 9,884 |  |  | 14,590 |
The following is supplementary information to the consolidated financial statements about average historical claims duration as of December 31, 2022.
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Years | 1 | 2 | 3 | 4 | 5
Special property | 98 | % | 10 | % | — | % | 1 | % | — | %

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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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