Assalaamu’alaikum,
I would greatly appreciate the views of both muftis on here regarding the below.
I have been offered a role as a technical and regulatory specialist for an insurance broker. My questions are on permissibility based on: 1) the role itself; 2) the source of my remuneration (salary).
Regarding point 1 (the role), it involves ensuring the insurance broker is compliant with FCA rules and other regulations. There is no recording/witnessing any form of actual insurance transaction. The role entails things like completing regulatory returns/forms to be submitted to the FCA, replying to breaches of FCA rules to regulators, liaising with the auditors. I am confident this is far removed from facilitation of insurance - as a broker, the company does not underwrite insurance policies itself - but I would like your opinion given your expertise as muftis.
Regarding point 2 (source of remuneration) this is where I have more uncertainty.
The broker does not underwrite any policies because it is an insurance intermediary. 100% of its revenue is derived from taking a profit commission (brokerage) as a fixed percentage of money it handles, which is stipulated in its ‘terms of business agreements’ with its clients (insurers).
Is this source of revenue lawful for me to receive a salary from?
Here is an example of how the broker generates revenue. The broker represents company A which is an insurer, and the broker agrees that it will receive client money on behalf of company A and take a fixed 5% as a commission fee for handling the money. Company A is due to receive £100,000 of premium from its client, company B which is a ‘coverholder’. Company B would send the money to the broker who would check that B is a legitimate entity, has active bank details and was indeed a policyholder that owes monies to company A and has transmitted the right amount. Once satisfied, the broker transmits the money to Company A net of £5000 commission (5%). This £5000 enters the broker’s revenue and, ultimately, profit.
A few other points: I made it clear to the CFO I would stay for 12-24 months and look to move to another field from the outset. In fact I rejected the role initially, but the CFO convinced me to reconsider. If I do not accept this job, it would most likely mean being unable to secure something before September 2024 due to my 3 month notice period. I have a massive bill due in that month, so this job is the only way for me to comfortably pay it given that the role is offering almost double my existing salary. It also means I wouldn’t need to do silly hours like 80-100 hour weeks. I have often been consecutively starting work at 9.30am and finishing at 4/5am the following day and it has taken its toll on my physical health. While work is not as intense now, it is expected to be so from January 2024. Effectively, it is not feasible for me to be in my current role anymore after 3.5 years.
Based on all of the above, please do provide your views @Mufti_Faraz_Adam @Mufti_Billal I would need to either accept or reject the offer in the coming day or two at most so I would greatly appreciate your advice on its permissibility.
Jazak Allah