Quantum Computing: Opportunities and Threats for the Insurance Industry

Remarkable progress in quantum hardware, algorithms, and error correction is bringing quantum computing closer to practical application in the insurance industry.

Potential applications span a wide range of insurance challenges, including optimization, fraud detection, valuation, pricing, and risk modeling. However, the suitability of different quantum approaches is evolving and depends on the specific use case, the maturity of the underlying technology, and the relevant time horizon.

What began as a largely theoretical discussion is evolving into a growing ecosystem of insurers, reinsurers, technology providers, startups, academia, and industry organizations.

Through research initiatives, pilot projects, partnerships, consortia and working groups, stakeholders across the insurance sector are helping to advance quantum innovation and preparedness. As the technology matures, ongoing multidisciplinary and cross-industry collaboration is likely to play a key role in turning potential into practical impact.

Quantum computing has the potential to break widely used public-key cryptography (e.g., RSA and ECC), and threats such as "harvest now, decrypt later" attacks mean that sensitive data may already be at risk today.

Building quantum resilience is not a simple technology upgrade: the transition to post-quantum cryptography and crypto agility will be a significant undertaking, increasing the urgency for action across the insurance industry and beyond. Regulatory expectations are becoming more defined.

For example, the Swiss Financial Market Supervisory Authority FINMA recently recommended that supervised institutions have a PQC roadmap in place by mid-2027 at the latest.

Most industries are asking how they can benefit from applying quantum computing and how they can protect themselves from quantum-related threats.

The insurance industry faces additional questions: how quantum technologies may reshape insured risks, how insurance products can help manage and transfer emerging quantum-related risks, and how insurers and reinsurers can strengthen resilience through underwriting and coverage terms and conditions, pricing incentives, and risk-transfer mechanisms.

As a result, the insurance industry may play an important role not only in adapting to the quantum era, but also in supporting resilience and innovation across the broader economy.

Quantum technologies have implications that extend far beyond individual use cases or cybersecurity considerations. Insurers and reinsurers must navigate an evolving landscape shaped by new opportunities, emerging risks, regulatory expectations, and growing ecosystem complexity.

Organizations that prepare early, engage across the ecosystem, and build long-term capabilities will be better positioned to maintain trust, remain competitive, and strengthen resilience in the quantum era.