Amazon Web Services recently announced Braket, a quantum computing cloud service offering users access to quantum hardware from multiple providers. Additionally, AWS unveiled the AWS Center for Quantum Computing (a Caltech-adjacent research center) and the Amazon Quantum Solutions Lab (a program to connect AWS customers with quantum computing experts). With this announcement, AWS officially joins the ranks of quantum computing cloud providers—a select few of which are featured in Novarica’s recent report on the quantum computing vendor ecosystem.
Quantum computing is poised to break the barriers of classical computing, forcing redesign of the fundamental technology underlying data protection, risk modeling, and select insurance third-party services. More and more financial institutions are starting to invest resources into quantum computing solutions, pilots, and initiatives. The rate at which quantum research, hardware, and algorithms are becoming available for commercial use grows every day; Novarica expects that quantum computing will fundamentally impact the insurance industry between 2024 and 2030.
As quantum computing evolves into an unprecedented cybersecurity hazard, carriers should become aware of the threat of bad actors leveraging quantum computing to attack encrypted data and security protocols. Though current quantum computers do not yet have the processing power to break today’s most widely used public-key cryptography techniques, it’s only a matter of time before they do. The advent of quantum computing puts insurers at financial and reputational risk—one day, reliable protection of policyholder data will be a substantial challenge.
However, the rise of quantum computing also offers insurers notable growth opportunities. If adopted early and leveraged thoughtfully, quantum computing may give carriers a competitive advantage in risk modeling accuracy, core systems agility, data security, and AI-driven offerings and initiatives. The competitive risk to carriers for not leveraging quantum will grow exponentially as quantum computers become widely cloud-accessible—whether through AWS’ Braket, D-Wave’s Leap, IBM’s Q Experience, Microsoft’s Azure Quantum, or Rigetti Computing’s Quantum Cloud Services.
For a more in-depth look at quantum computing theory, challenges, players, readiness, and its potential impact on the insurance industry, read the full report, Quantum Computing and Insurance: Overview and Potential Players.
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