What does quantum computing mean for insurance?

Insurance underwriting is data driven. With an increasingly connected world that is creating more data than humans can handle, computers and AI have come to help with data analysis and decision making. Quantum computing could change the way insurance companies use data for underwriting, and beyond.

Although we are still several years away from realizing the full potential of quantum computing, insurers need to consider the future of quantum computing in their current systems. The cloud is the foundation for the efficient use of quantum computing. Carriers need to encourage cloud adoption and improve their cloud access to data collection in preparation for quantum computing going forward.

Why insurers should care about the potential of quantum computing

For the past few years, Accenture has been following the line of quantum computing technology. Our latest recommendations 2022 Technology Vision Report reveal that we are entering a new era of digital transformation in which innovation—and economic success—will be driven by unprecedented computing power.

Quantum computing helps us solve problems that are too difficult for traditional computers. In this context, complexity refers to a large number of disparities and elements that interact in complex ways. Using an example from the report: In transportation, a single trip with 16 stops has 20 trillion possible routes. A primitive computer would have to go through every possible path to find the best solution, which would take even the fastest computers decades to figure out.

As new quantum computing technologies become commercially viable – not only feasible in higher education – working with big data becomes possible for ordinary businesses.

Accenture predicts that 80% of most jobs will be in the cloud in the next few years. This means more opportunities to collect data generated by operations and practices that are happening around the world. With quantum computing technology, companies will be able to extract insights from this vast amount of data to drive value in their business.

To quote Technology Vision, “Companies need to look for white space opportunities where special or super-powerful computers can make a big impact on their companies.” Insurers that take the lead in expanding their analytics tools may have an advantage as we move into a world of virtual reality, IoT wearables, and computer vision – a world where capturing data is easier than ever and the volume and complexity of data only continues to grow. add it.

Using data fully

Quantum computing is an extension of the cloud and can make what we already do in the cloud even more important. In one of my recent posts, I talked a bit about how wearables and IoT technology will bring more information to authors under the cloud. Currently, AI is helping underwriters by collecting, analyzing, and understanding the data they can find. But as data on individual customers continues to proliferate, quantum computing can help insurers make big decisions and better predict where the market is headed.

Quantum computing can also help insurers assess risk on a much larger scale. Risk assessment, at its core, is an assessment of how likely things are to go wrong. In the insurance industry, quantum computing is completely possible revise the underwriting process. Quantum computing is already used in risk analysis in the financial industry for forecasting transactions and financial market behavior by Goldman Sachs (in collaboration with computing companies, IonQ and QC Ware). In the same way that a quantum computer can quickly determine the best shipping routes out of 20 trillion routes, it can also determine the likelihood of a person getting into a car accident at certain intersections.

An important application of quantum computing is to model the effects of climate change. Quantum computing can solve cross-sectional problems that help assess the risks posed by natural events such as wildfires and hurricanes. Unprecedented natural disasters will continue to affect our assets and our health and computerization can reduce the unknown to help carriers understand what the future holds. With good modeling skills, underwriters can accurately deliver what customers need while driving high growth, even as our climate becomes more volatile.

As we approach a world where quantum computing is part of business processes, today’s insurers need to assess their current liabilities. Change is coming fast. As major advances in quantum computing are unlocked, the gap between early adopters and laggards grows rapidly.

Taking the first steps to start quantum computing

One of the main challenges identified in the Technology Vision is the huge gap between technology capabilities and the skills needed to use that technology. Leaders across industries must consider how to train and hire the talent they will need to work in the organizations of the future, including quantum computing. A study cited in Technology Vision from the UK found that there was a significant shortage of senior computer professionals. Insurers can increase the demand for these positions to encourage job seekers and focus on upgrading existing employees.

Insurers should also consider whether they have the right decision makers in the room. Do you have people on your team who can think critically about the challenges ahead and the opportunity to develop strong solutions to the challenges? Having a diverse team working together to plan quickly is important. Bringing different perspectives and backgrounds to the table will lead to more challenges and solutions.

In addition to bringing the right skills to support quantum computing-related initiatives, building relationships will help leaders achieve scalable results at a reasonable cost—in terms of people, technology, and money. The Technology Vision report recommends joining a consortium that supports quantum computing across industries.

In healthcare, a collaboration between NVIDIA, AstraZeneca, and GlaxoSmithKline (GSK) around Cambridge-1, the UK’s supercomputer, will lead to an AI model for pharmaceutical products. It has helped bring new products to market much faster than using predictive analytics.

Insurance leaders are slowly joining the arms race for quantum supremacy. German reinsurer Munich Re is one of the founding members of the country’s Quantum Technology & Application Consortium. In the US, the Quantum Economic Development Consortium (QED-C) is one of the first organizations working on the development of many devices and members currently include companies such as AT&T, Wells Fargo, Boeing and Honeywell. There are many opportunities for insurers to be the first in the industry to participate in quantum computing research and development.

From cloud to quantum

Quantum computing will change the way we use data, increasing the value of data that is already being collected through cloud technology. The digital world will only be filled with virtual reality. The amount of important data organizations will get will also continue to increase as we introduce human activities. To take full advantage of this data explosion, insurers must take quantum computing seriously as part of their overall cloud and data strategy.

I want to discuss how you can scale your cloud solution for the future of quantum computing. Please contact me.