I am considering studying Actuarial Science in Waterloo, Canada. I would like to know if it is Haram to work as an actuary in an insurance company. Furthermore, if it is haraam to work in an insurance company, why? Also then, is it haraam to work in a non-insurance company as an actuary? For example if I were to work as a consultant or in a utilities company like T&TEC.
It will not be permissible to work as an actuary in an insurance company. The reason for this is that an insurance company is engaged in interest based transactions which are totally haram in Islam.
It is allowed and permissible to work in a non-insurance company like T&TEC etc., however, it should not be in the Insurance Dept. of the company.
An Actuary is one who calculates insurance risks and premiums, and the scholars have stated that all forms of conventional insurances are based on interest and uncertainty. Hence, while working in the company’s insurance department you will be required to calculate figures based on interest as well as uncertainty which are both forbidden in Islam. If you are not in this department then working for such utilities company will be permissible.
And Allah knows best.
Mufti Waseem Khan