The UK Government has called on insurers to embrace the benefits of quantum technology as it looks to invest £1 billion in the coming decade.

UK Research and Innovation (UKRI) is currently investing £153 million, to develop new products and services based on advances in quantum technologies that will have a significant impact on financial services. This is part of a larger investment in the UK National Quantum Technologies Programme which is on track to delivering £1 billion in investment over its 10-year life.

UKRI revealed major banks, insurance providers and regulators are already assessing the opportunities and advising clients on quantum computers for quantitative finance, asset pricing and portfolio optimisation.

Among the initiatives are work on precise quantum clocks for timestamping transactions to advance high frequency trading and quantum security solutions to protect sensitive financial transaction data.

The Commercialising Quantum Technologies Challenge, through UKRI’s Industrial Strategy Challenge Fund (ISCF), has so far awarded a total of £90 million across 42 projects to realise the potential of the new generation of quantum technologies.

Roger McKinlay, Challenge Director, Commercialising Quantum Technologies Challenge said: “Quantum technologies are expected to have a huge impact on the financial services industry. Banks, insurance providers and regulators are already thinking ahead to the implications this technology will have on businesses, the economy and society.

“We are looking to fund the best teams of UK companies and research organisations to help them develop their ideas for innovation and commercialisation.”

The UK’s ambition is to be the world’s first quantum-ready economy, by being positioned as a global leader in an emerging quantum industry presented with a market opportunity estimated to be in excess of £10 billion by 2030.

Among the projects to be awarded funding is one led by Rigetti UK in partnership with Standard Chartered Bank, Oxford Instruments, Phasecraft and the University of Edinburgh who have been awarded £6.4 million to accelerate the commercialisation of quantum computing in the UK. The three-year project will develop an advanced commercial quantum computer in the country, make it available over the cloud and pursue practical applications in machine learning, materials simulation and finance.

The UK’s ambition is to be the world’s first quantum-ready economy, by being positioned as a global leader in an emerging quantum industry presented with a market opportunity estimated to be in excess of £10 billion by 2030.