Quantum computing - the potential of the second quantum revolution

15 Jul, 2021

The topic of quantum computing (QC) has always raised great expectations in the past (1), but its commercial use still seemed largely limited. However, if you take a closer look, the second quantum revolution, i.e. the productive application of quantum mechanical principles in information processing, is already feasible. Google, one of the drivers behind the development of commercially viable quantum computers, was already able to demonstrate quantum supremacy for a specific problem in 2019 (2). So it’s high time to take another look at how insurers, especially those with a high degree of digitalization, could benefit from the new technological possibilities.

The fact that quantum computing is not an easy topic to understand should be clear to anyone who has ever had to deal with quantum mechanics. As the physics luminary Richard Feynman once said: “I think I can safely say that nobody really understands quantum mechanics” (3). And yet today we have access to usable quantum computers. They may still seem a little outdated in nature, they are not so quick on their feet and their memory is not the best either. However, this does not detract from the enormous potential of the technology. Without having to look into a crystal ball, we can say that quantum computers will become faster and more reliable over the next few years. This is because a strong front of renowned universities, tech giants and start-ups is constantly working on the broad breakthrough of the technology. IBM, for example, hopes to build a quantum computer with 1,000 qubits by 2023. By comparison, the above-mentioned quantum computer from Google in 2019 had just 54 qubits (4).

The qubit forms the basis of quantum computers

What is a qubit actually? A qubit is a quantum mechanical two-state system that must have certain properties in order to be considered for use in a quantum computer. Technically, various possible systems are currently being explored - such as ions in ion traps, superconducting electronic circuits or photons. But why are calculations with these qubits so interesting? This is due to the ability of these quantum mechanical systems to exist in a state of superposition. In other words, they can theoretically carry two values at the same time. Effectively, two calculations can be carried out simultaneously on one qubit. If two qubits are quantum-mechanically entangled, they can be used to perform 2 to the power of 2 calculations simultaneously, with three entangled qubits 2 to the power of 3 (5). IBM could therefore theoretically carry out a gigantic number of simultaneous calculations with 1,000 qubits. Nevertheless, such a quantum computer would be just another milestone towards exploiting the full potential of the technology, such as decrypting current encryption standards on the Internet (6).

Rapid progress in the basic requirements for complex calculations

However, the number of qubits alone is not decisive for the progress of quantum computing. The challenge in building genuine quantum computers lies in avoiding decoherence of the qubit system, i.e. shielding it from any influence of the environment such as vibrations, temperature fluctuations or electromagnetic waves. If this is not achieved, or only incompletely, a complex calculation will increasingly accumulate errors and the result will ultimately disappear in the error noise (7). Part of the solution to this problem could lie in the quantum threshold theorem approach and the use of quantum error correction algorithms. The latter should ensure a correct result even with complex calculations. However, even if the problem of decoherence has not yet been conclusively solved, progress is currently being made one after the other and this means that an (interim) solution is within reach (8).

Early adopters are already using existing QC ecosystems for exploration

This is why tech giants such as Microsoft, Google, Amazon and IBM are already offering cloud-based quantum computing ecosystems. These offer direct access to QC emulators, simulators or even real quantum computers. It should be noted that access is not only possible for researchers, but also for interested companies and individuals. IBM, for example, allows the free use of a five-qubit quantum computer (9). There are also numerous start-ups such as Xanadu and Rigetti that are working on quantum computers and making QC platforms publicly available. Early adopters such as Daimler, JPMorgan Chase, Samsung and other large companies from the financial and tech industries (10, 11) are already using the IBM Quantum Network exclusively to solve complex problems efficiently in the future.

A roadmap for the quantum advantage

What roadmap will soon make you “quantum-ready” as an insurer? It is advisable to pursue a five-point strategy (13):

Draw on technology experts as quantum champions who have a good insight into the potential benefits of quantum computing and the impact on your business model.
Based on this expert knowledge, develop concrete use cases and the resulting benefits.
Experiment with real quantum computers (or simulators). Derive steps for a technological link with your infrastructure and IT architecture.
Follow the dynamic development in the field of QC and analyze the emerging best practices, toolkits and ecosystems in relation to the use cases you have identified.
Act as soon as a quantum advantage can be established.

References

Please note that this article has originally been published with a former employer and is available here in its original german version in full length