How Quantum Computing Could Reshape Cyber Risk and Encryption Security

The rise of quantum computing brings both innovation and cybersecurity threats, particularly regarding encryption vulnerabilities. Experts warn that quantum computers could eventually break traditional encryption methods, exposing sensitive data and increasing cyber risks for businesses, governments, and individuals. Cybercriminals are already employing a ‘harvest now, decrypt later’ strategy, stealing encrypted data in hopes of deciphering it once quantum technology advances.

John Farley, managing director at Gallagher’s cyber liability practice, highlights the importance of preparing for these risks. He points to guidance from the National Institute of Standards and Technology (NIST), which has developed quantum-resistant cryptographic standards. Businesses are encouraged to adopt these measures early to strengthen their security posture.

Cyber insurance is emerging as a critical tool to mitigate potential financial losses from quantum cyber threats. Policies often provide access to breach response teams, IT forensic investigators, and legal experts. As the threat landscape evolves, cyber insurance underwriters will likely focus more on quantum security preparedness. Organizations that proactively address these risks will be better positioned to protect their data and comply with emerging cybersecurity standards.