“…Following prior research (e.g., Beaver et al, 2003;Cheng, Qian, et al, 2020;Grace & Leverty, 2010, 2012, we include a number of control variables related to the determinants of loss reserve errors, including insurers' size (Size), lines of business (NetPremium Personal and NetPremium Commercial), the diversification of business along the dimensions of product lines and geographic coverage (Herfindahl Line and Herfindahl State), reinsurance usage (Reinsurance), net premium written growth (Growth), income smoothing (Small Profit, Small Loss, Profit, and Loss), financial weakness (PrFail), group ownership (Group Affiliation), and rate regulation (Rate Regulation).…”