A white paper led by Dr. Christoph Kloeffel (Head of Quantum Technology) and Dr. Alexander Lacher (Head of the Insurance Industry) at KPMG Switzerland examines the impact of quantum computing on the insurance industry, as well as the industry’s role in building resilience, fostering innovation, and preparing for the quantum age.
Quantum computing presents both opportunities and challenges for the insurance industry, with implications for areas such as use cases, products, risks, and quantum resilience. This white paper examines what these developments could mean for insurers and reinsurers and why the topic warrants careful consideration and timely preparation. It was developed in collaboration with Lloyd’s of London and QuantumBasel and enriched by contributions from a wide range of organizations and specialists. As such, it brings together perspectives from both the insurance and quantum ecosystems.
Discover the key findings and read the full white paper.
How Quantum Computing Benefits the Insurance Industry
Quantum computing has the potential to help solve some of the insurance industry’s most challenging computational problems, with potential applications ranging from asset-liability management and portfolio optimization to pricing, valuation, and catastrophe simulation to risk modeling and machine learning-based use cases such as fraud detection. However, the potential benefits depend on factors such as the business relevance of a use case and the maturity of the corresponding quantum technologies and approaches.
It’s Worth Starting to Prepare Today
The impact of quantum computing is not limited to the point in time when large-scale, fault-tolerant quantum computers become available. “Harvest-now-decrypt-later” attacks already pose a security threat today, while rapid technological progress and increasing attention from regulators further underscore the need for quantum readiness. Building knowledge, strengthening quantum resilience, forging partnerships, and identifying promising applications—all of this takes time. Getting started early enables insurers and reinsurers to prepare in a structured manner as the technology and its implications continue to evolve.
Impact on Products and Services
Quantum computing could affect insurers and reinsurers not only as a technology they may use or need to prepare for, but also by altering the risks and opportunities faced by the organizations they insure, which could have potential implications for insurance products and services. As quantum technologies continue to advance, insurers and reinsurers must consider the implications for existing coverage, emerging risks, and the development of new products and services. By understanding these evolving risks and opportunities, the insurance industry can also play a key role in promoting resilience and innovation across industries.
How Insurers Can Prepare
The white paper recommends twelve measures to address the key challenges and opportunities of quantum computing. These measures cover the areas of strategy and governance, human resources and the ecosystem, security and quantum resilience, as well as the adoption of quantum technology and insurance innovations. Companies that start early and take meaningful steps today are best positioned to build resilience, maintain trust, and strengthen their competitiveness in the quantum age.
Dr. Christoph Kloeffel, Quantum Technology Lead (KPMG Switzerland)
Dr. Alexander Lacher, Partner, Financial Services, Head of the Insurance Sector (KPMG Switzerland)
See also: The future is not a matter of technology, but of people
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