Embracing the Quantum Economy 2024

Implications for financial services FIGURE 5 Financial services Themes of value creation Financial services innovation Reinsurance optimization Faster and more accurate risk assessment Effective high-frequency trading strategiesQuantum computing Helping the economy diversify by enhancing fintech and risk-management sectorsReal estate and insurance innovation with sensors Enhanced fraud detection systems Distributed detection systems for enhanced fraud detection systems (in the future) Precise geolocation to help assess property value/risks for insuranceQuantum sensing Aiding more precise decision-making in real estate and distribution sectorsCybersecurity and data integrity Physical encryption networks Distributed entanglement for precision timekeeping (in the future) Secure encryption and authenticationQuantum communications and security Fostering trust and growth in cybersecurity and secure financial services Source: World Economic Forum in collaboration with Accenture2.2.1 Financial services Quantum computing is revolutionizing the finance sector, particularly the insurance and capital markets. Optimizing reinsurance structures using quantum algorithms has the potential for more accurate risk assessment and pricing. This leads to better capital allocation and reduced costs for insurers.46 As Marcin Detyniecki, Head of Research and Group Chief Data Scientist, AXA, notes, “Leveraging Quantum Computing to optimize reinsurance coverage, accelerating risk analysis and providing more sophisticated models for pricing” is key. He further emphasizes, “While the supremacy of quantum computing will not be felt in industrial use cases for some time, we are laying the groundwork for a disruptive future while delivering business value today by focusing on the hard problems the technology can solve.” Investors benefit from enhanced portfolio optimization and risk management, resulting in more stable returns.47 This aligns with the World Economic Forum’s emphasis on economic diversification by enabling more efficient financial systems and fostering innovation in risk management. Quantum technologies create new fintech opportunities such as improved risk management and faster trading strategies. By enhancing financial infrastructure, these technologies allow for the creation of more sophisticated financial products, diversifying the financial ecosystem for institutions and consumers alike.48 Embracing the Quantum Economy: A Pathway for Business Leaders 22