Quantum Monte-Carlo for Tail-Risk Assessment
Introduction
Catastrophe insurance requires accurate tail-risk assessment (probability of extreme catastrophes). Quantum-inspired algorithms improve Monte Carlo efficiency enabling more robust tail-risk estimation.
Algorithm Approach and Efficiency
Quantum-inspired sampling efficiently explores rare event distributions.
Risk Assessment Improvements
Improved tail-risk estimation supports catastrophe bond pricing and reinsurance strategy.
Conclusion
Quantum-inspired algorithms improve catastrophe risk assessment efficiency.