Quantum Leap: Are we ready to brace the impact of Quantum Computing on the Insurance Industry?

As we have started our new financial year 2025-26, the service industry stands on the brink of a technological revolution. Beyond artificial intelligence, cloud computing, and blockchain, another powerful technological force is emergingiXQuantum Computing.

- Durbadal Mukherjee

Quantification:

As we have started our new financial year 2025-26, the service industry stands on the brink of a technological revolution. Beyond artificial intelligence, cloud computing, and blockchain, another powerful technological force is emergingiXQuantum Computing. Once considered the domain of physicists and academic laboratories, quantum technology is now poised to disrupt business paradigms, especially in complex, data-intensive sectors like insurance.

What does the buzzword Quantum Computing mean?

Quantum computing leverages the principles of quantum mechanics to process information in fundamentally new ways. Unlike classical computers that use bits (0 or 1), quantum computers use qubits, which can exist in multiple states simultaneously due to superposition. They can also be entanglediXmeaning the state of one qubit can depend on another, even at a distanceiXallowing exponential increases in computational power.

Why do insurers even need to talk Quantum?

The insurance industry is intensively probabilistic and data-driven, making it a natural beneficiary of quantum advances. With petabytes of structured and unstructured data from claims, underwriting, customer behavior, IoT devices, and regulatory filings, insurers face complex optimization problems that classical systems struggle to solve in real-time.

Quantum computing holds the promise of revolutionizing several core functions:

1. Quantum Risk Modeling