Portfolio Optimization

Allstate uses a hybrid quantum-classical workflow to select insurance portfolio risks under value and risk-tolerance constraints.

Business impact

• Problem size with results tying exact solvers — The workflow ties exact-solver results on problems of up to 75 items.

Data requirements

• Insurance portfolio risk data (tabular) — The workflow operates on portfolio items with value and risk-tolerance constraints.
• Simulation outputs (tabular) — Traditional methods use many simulated futures to estimate tail risk and compare against the hybrid approach.

AI methods and techniques

• Hybrid quantum-classical workflow — Quantum computing generates candidate portfolio combinations, and classical algorithms refine them.
• Transfer learning — The team trains on smaller problems before scaling to larger ones to improve circuit performance.

Industries

Real-world evidence

1 documented case study on record.

Companies using this: Allstate.