Last week, Honeywell Quantum Solutions and Cambridge Quantum Computing announced a joint venture. The combined organization is the largest and most advanced quantum company in the world today. Honeywell anticipates investing between $270M-$300M in the new organization, which will help expand its quantum offerings.
Novarica anticipates that investors will keep a close eye on industry leaders like Honeywell/CQC. The quantum computing industry is expected to top $1T over the next 30 years. Quantum-powered AI and ML have the potential to change the way the financial services industry does business.
Leading financial services players have long invested in the quantum computing space. JP Morgan Securities LLC, for instance, is acting as the lead financial advisor for Honeywell’s recent venture. Xanadu closed $100M in Series B financing last month with prominent VC firms, including Bessemer Venture Partners, leading the funding round. Other key players, including Goldman Sachs and Morgan Stanley, have invested funds and resources into investigating quantum business applications and use cases.
The insurance industry’s history of hesitancy has protected it from the fallout of taking certain risks, but the rise of quantum changes the game. Well into the Decade of Quantum Computing, the risks of losing first-mover advantage now come with the risk of coming in last. Quantum computing poses immense security risks that insurers need to start preparing for today.
Ransomware attacks are on the rise; insurers need to do what they can to become crypto-agile and quantum-safe as soon as possible. Insurers that embrace our quantum future sooner will also enjoy the benefits of early adoption.
For more on this topic, check out my recent Snapshot, Quantum and Insurance Update 2021-Q2.
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