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Quantum internal models for Solvency II and quantitative risk management

Muhammad Amjad

British Actuarial Journal2025https://doi.org/10.1017/s135732172400031xarticle
AJG 1ABDC B
Weight
0.44

Abstract

This paper extends previous research on using quantum computers for risk management to a substantial, real-world challenge: constructing a quantum internal model for a medium-sized insurance company. Leveraging the author’s extensive experience as the former Head of Internal Model at a prominent UK insurer, we closely examine the practical bottlenecks in developing and maintaining quantum internal models. Our work seeks to determine whether a quadratic speedup, through quantum amplitude estimation can be realised for problems at an industrial scale. It also builds on previous work that explores the application of quantum computing to the problem of asset liability management in an actuarial context. Finally, we identify both the obstacles and the potential opportunities that emerge from applying quantum computing to the field of insurance risk management.

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https://doi.org/https://doi.org/10.1017/s135732172400031x

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@article{muhammad2025,
  title        = {{Quantum internal models for Solvency II and quantitative risk management}},
  author       = {Muhammad Amjad},
  journal      = {British Actuarial Journal},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1017/s135732172400031x},
}

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Quantum internal models for Solvency II and quantitative risk management

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Evidence weight

0.44

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.32 × 0.4 = 0.13
M · momentum0.57 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.