Quantum Computational Insurance and Actuarial Science

TL;DR

This paper explores how quantum computation can revolutionize insurance and actuarial science by introducing quantum algorithms, demonstrating applications in various insurance sectors, and discussing future challenges and developments.

Contribution

It systematically connects quantum computation with insurance, providing initial models, experimental demonstrations, and insights into quantum-enhanced insurance products.

Findings

Quantum algorithms can address complex insurance problems.

Experimental results show potential in non-life, life, and reinsurance sectors.

Discussion of timeline and challenges for quantum insurance development.

Abstract

In recent years, quantum computation has been rapidly advancing, driving a technological revolution with significant potential across various sectors, particularly in finance. Despite this, the insurance industry, an essential tool for mitigating unforeseen risks and losses, has received limited attention. This paper provides an initial exploration into the realm of quantum computational insurance and actuarial science. After introducing key insurance models and challenges, we discuss quantum algorithms that can address insurance problems based on their mathematical nature. Our study includes experimental and numerical demonstrations of quantum applications in non-life insurance, life insurance, and reinsurance. Additionally, we explore the timeline for quantum insurance, the development of quantum-enhanced insurance products, and the challenges posed by quantum computational advancements. This work systematically constructs the connection between quantum computation and the insurance industry, enhancing the development of insurance while promoting the application of quantum computation to more realistic problems.