Quantum Computing and its impact on Actuarial Modeling

October 2023

Author

Kailan Shang, FSA, CFA, PRM, SCJP

The complexity of actuarial modeling keeps growing given the broad guarantees provided by insurers, the heightened market volatility and correlations, and the regulatory reforms that require more comprehensive, and usually stochastic, analysis. The fundamental breakthrough of computing technology, such as quantum computers, has a potential to solve many of the computationally intensive issues faced by actuaries. This research introduces quantum computing to actuaries and also identifies areas in the insurance field where quantum computing can make a difference.

Report

Quantum Computing and its impact on Actuarial Modeling

Acknowledgements

The authors would like to thank all members of the Project Oversight Group (POG) tasked with providing governance on this research project. This paper would not have attained its current level of relevance to practitioners without the POG’s guidance, feedback and insightful input.

Project Oversight Group members:

Brent Carpenetti, FSA, MAAA, CERA

Lysanias Chikwanda

Tyler Doiron

David Moran, FSA, MAAA

Bryon Robidoux, FSA, MAAA, CERA

Sam Wehner, ASA, MAAA

At the Society of Actuaries Research Institute:

David Schraub, FSA, CERA, MAAA, AQ

The authors would also like to thank Korrel Crawford for her effective coordination of this project, as well as the sponsorship and funding support of the Society of Actuaries.

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