The Islamic laws regarding the occupation of Actuarial Science
As-salaamu-Alaikum. Recently I’ve been hearing the remark that the study of Actuarial Science is forbidden in Islam, whilst other points of view says that the study is allowed but the work in the field with insurance risks is haraam. With the knowledge that accountants can work in the desired field so long as there is no direct contact with interest, is the study of Actuarial Science then permitted? Jazakallah
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuaries apply financial and statistical theories to solve real business problems. These business problems typically involve analysing future financial events, especially when the amount of a future payment, or the timing of when it is paid, is uncertain. A lot of actuaries’ work might be thought of as “risk management”, assessing how likely an event may be and the costs associated with it.
It is understood that Actuarial science does not entail any Haram in itself. Therefore, it would be permissible to study Actuarial science as long as there is no involving in interest relating or any Haram activities.
However, an Actuarialist would most likely be required to work in interest related fields, which is impermissible. Hence, as a Muslim one should question whether studying such a field would be of benefit.
And Allah Ta’āla Knows Best
Mufti Arshad Ali
Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)