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Lloyd’s ‘The Impacts of Quantum Computing on Insurance’

By IQT News posted 17 Mar 2021

(Lloyds) Lloyds has published an extensive discussion explaining quantum computing to business community. The 34-page PDF document includes several comprehensive introductory sections for business-oriented readers as well as Lloyd’s expert discussion of quantum computing’s impacts on insurance.
The document can be downloaded here.

–From theory to reality
–The (not so) basics of quantum computing
–Quantum computing’s threat to cyber security
–The quantum landscape Insurance impacts
–Navigating the quantum realm
–Moving Forward

The introduction to the “Insurance Lines of Business Affected” is summarized below:

There are many insurance lines of business that will be impacted by the emergence of quantum computing. However, the largest potential impact arises from the cybersecurity risks posed by cryptographically relevant quantum computers. Cyber risks by their nature can have an influenceon many lines of insurance business and practically all industries. In a scenario where the cryptographic threat from quantum computing precedes the full adoption of PQC or other quantum-secure protocols,the world and the insurance industry face a systemic cyber risk that can affect everything from the security of our text messages to state guarded secrets and access to military codes.

Quantum computing also exacerbates the risk faced by AI technology, since quantum computing will improve ML capabilities, leading to a broader adoption of ML and AI solutions and products in all industries. The impacts of AI on insurance are further discussed in the Lloyd’s report Taking control: AI and insurance. Quantum computing will also most likely improve the accuracy of AI as larger data sets can be processed to train ML algorithms. Therefore, the product liability and product recall risk landscape of robots and AI products willbe changed with the emergence of quantum computing.

Third-party motor liability: The liability complications arising from accidents involving autonomous vehicles will become a reality sooner than expected,with ML based quantum computing accelerating the arrival of driverless cars.

Political risks: The power of quantum computing could lead to the creation of better deep fakes, be used to better distribute online propaganda and fake news and take advantage of human behaviour for social engineering. This increased capability to instigate political unrest can lead to more protests,followed by government backlash, which would have an impact on business interruption and property damage.

Property damage: The expensive hardware and control systems employed in quantum computing mainframes will increase the property risk profile

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