Today’s information technology systems remain limited by the barriers imposed by classic binary computing. The rise of quantum computing will bring about a change in technology that will impact the fundamentals underlying data usage and protection, risk modeling, and the very nature of how insurance core systems operate. Recent breakthroughs in the technology bring quantum computing’s operationalization closer, with an expected substantial impact on the insurance industry between 2023 and 2030.
The successful implementation of quantum computing could cause large-scale disruption across industries, given its fundamental upheaval of data handling. In the insurance business, there are multiple opportunities for the application of quantum technology: artificial intelligence, data security, data transfer, core systems, and risk modeling.
Insurance carriers should expect adoption of quantum methods, independent of consumer adoption rates, in a similar manner to other innovative technologies. This means adoption begins with the largest carriers and with property/casualty carriers before life/annuities carriers. Insurers should consider embracing emerging technologies like cloud, big data, and AI to be ahead of the curve, as well as the likelihood of outsourcing quantum computing capabilities to combat expense challenges.
Though quantum computing is not yet an immediate issue, carriers should begin incorporating the technology into their five-year outlook plans and understanding how quantum computing will affect the way they do business.
More on this can be found at: https://dev-novarica.pantheonsite.io/quantum-computing-and-insurance-overview-and-potential-players/.
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