Studying Actuarial Science

Question:-

Is studying Actuarial Science correct and advisable? If not, then why? Many Ulama state that it is permissible, whilst others state that it is not permissible. What about studying Actuarial Sciences but not working as an Actuary? Its a field that is growing and has many branches. A person might branch off into lecturing maths and so on.

Answer:-

Actuarial Science is the discipline that applies mathematical and statistical methods to assess risk in insurance, pension, finance, investment and other industries and professions. More generally, actuaries apply rigorous mathematics to model matters of uncertainty. (Wikipedia)

Since Actuarial Science leads to dealing with many transactions that are impermissible in the Shariah, we advise that one should refrain from studying it. Secondly, actuaries are very well paid hence, even if one studies with the intention of not getting involved in any of the impermissible areas, there is a strong possibility of them getting involved in it due to the lucrative salaries and positions offered. Also, the examinations for Actuarial Science are extremely intense and passing all subjects could take up to 7 years, according to reports. We have been sent to the world to prepare for the Aakhirah, so where can a Muslim afford to devote 7 years of his life in something that will hardly yield benefit, as most of the areas of practice (such as insurance) are impermissible.

We, therefore, strongly advise against it, despite there being those scholars who state that, it is acceptable to study Actuarial Science as long as one doesn’t get involved in any form of Haraam. These Ulama feel that, by studying the relevant course one will be able to make a distinction between Haraam and Halaal, and thereby, refrain from Haraam. However, we have made our stance clear, and that is, that we advise against it.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 13 Safar 1444 / 10 September 2022