Willis Towers Watson has entered into a quantum computing collaboration with tech giant Microsoft with an objective to transform risk management in order to make the insurance value chain more efficient.
The collaboration will develop the potential of quantum computing for the risk management and insurance clients of Willis Towers Watson.
The two firms already have a partnership, which is engaged in developing the latest technology and for launching advanced modelling tools to insurers across the world. The latest deal between the partners is an extension of the ongoing partnership, said Willis Towers Watson.
Currently, the insurance brokerage firm offers advanced analytics tools to more than 1,000 insurers across the globe to enable them to quantify risk and for efficiently allocating their capital.
Willis Towers Watson CEO John Haley said: “Current modelling techniques to quantify risk require a huge amount of computing power, using thousands of computers over many hours. The better the models, the more efficiently our clients can use their capital to manage risk.
“Quantum computing offers us the chance to look at our clients’ problems in a different way. By focusing on how we would model the problems on quantum computers when they become available at scale, we are able to redefine the problems and speed up our solutions on existing hardware today.”
According to the insurance brokerage firm, the approach of Microsoft towards building the quantum computer will scale best and also provide flexibility to meet the most complex modelling requirements of the insurance industry.
The insurance firm said that in the near term, it will work on tapping on the insights acquired from quantum inspired algorithms to significantly improve the models that are currently run in Azure.
Microsoft business development executive vice president Peggy Johnson said: “Willis Towers Watson’s ability to apply technology in novel ways to benefit their customers is always inspiring.
“We’re thrilled to have our Microsoft Quantum team working side-by-side with their experts to develop next generation modelling tools.”
Recently, Willis Towers Watson signed a deal to acquire TRANZACT, a direct-to-consumer health care firm that links individuals to US insurance carriers, in a deal worth up to $1.4bn (£1.11bn).