Abstract
The motor insurance is an important branch of non-life insurance in many countries; in some of them, coming first in total premium income category (in Romania, for example). In this paper we present the Gaussian mixture method to model the loss distribution of data from motor compulsory third part liability insurance. The parameters of the mixture are estimated using the Expectation Maximization (EM) algorithm.
Keywords: loss distributions, expectation maximization (EM) algorithm, motor third part liability insurance.