Working in Catastrophe Modelling/Risk Consulting

Everyday Islamic Finance Business and Career Questions
#1

Assalamu alaykum

Is it permissible to work as a Risk Modeller for a software company (e.g., AIR Worldwide Ltd, Risk Management Solutions) that specialises in development of commercial catastrophe risk models for insurance and reinsurance clients. The role itself involves scientific research and developing models to assess the probability of loss from natural catastrophes.

#2

Wasalam

May Allah bless you.
Yes its permissible.
Although one questionable point maybe the fact that the clients are from the insurance industry. However, I do not feel this should affect the permissibility of the job.

And Allah knows best!

#5

Jazakallah khair for your response. I have two follow up questions.

  1. Even though it is an engineering role, the product/information produced by the engineer will inevitable be used in risk management involving the use of financial derivatives to model and hedge the risks attached to the probability of incurring a loss. Is this permissible in your view?
  2. Would the same role but within an insurance/reinsurance broker company be permissible.
#6

  1. There are two ways to look at it, one is that to say the information you are producing is being used for haram transactions and therefore it is not permissible to produce such information.
    Another way to look at it is to say that the information produced can be used for halal and haram purposes. In which case, there should not be any issues from a fiqh perspective.
    Since you are working for a software company that has different type of customers who will be using for either purposes, I believe there is nothing wrong with what you are doing.

  2. Working for an insurance company or broker is not desirable, irrespective of the role involved.

And Allah knows best!