Is it permissible to undertake an administrative role in a reinsurance company?

Answered according to Hanafi Fiqh by AskOurImam.com

AsSalam Mufti Saheb

As per our telecon. Can mufti please peruse the job detail below and advise if this job is permissible or not. Shukran:

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BUSINESS ANALYST: ADMINISTRATION

Reinsurance Group of America – Cape Town, Western Cape

RGA South Africa is looking for a Business Analyst to ensure the Treaty and Facultative business is administered appropriately on the administration system and accurately in line with treaty specifications. The incumbent will also be responsible for developing and providing regular management information to other business functions.

Primary functions:

  • Achieve RGA’s goal of using RGA’s internal administration systems as the main administration systems in South Africa based on existing company standards.
  • Ensure that the company’s administration standards and time service requirements are applied to the handling of all business received.
  • Ensure that the administration of all South Africa’s business adheres to RGA treaties. This includes creating premium validation and reconciliation models and tools to verify client paid premiums.
  • Take part in administration audits and provide data in required format for South African functional audits.
  • Participate in the analysis of monthly statistics produced by administration.
  • Take ownership of clients, and be responsible for converting client data and treaties on to the appropriate system, including gathering treaty information from Pricing and Marketing teams and analyse
  • Creating and testing mapping specifications.
  • Set up treaties on the administration systems, both assumed and retrocession and load premium rate tables.
  • Verify data clean-ups carried out by IT teams.
  • Extract and document business requirements.
  • Data analysis.
  • Provide support and direction for system User Acceptance Testing.
  • Provide Microsoft, Access and SQL assistance to others in the Administration Team.

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Conventional Insurance constitutes interest,[1] gambling[2] and excessive uncertainty (Gharar)[3] all of which is prohibited in Islam[4].

It is not permissible to be an administrator in the company in reference as you will be advancing the core aims and objectives of the company which are un-Islamic[5]. Verily Allah says:

لا تعاونوا علي الإثم والعدوان و

Translation: And do not cooperate in sin and transgression[6].

And Allah Ta’āla Knows Best

Hanif Yusuf Patel

Student Darul Iftaa
UK

Checked and Approved by,
Mufti Ebrahim Desai.

References
[1]   The prohibition of Riba:

الذين يأكلون الربا لا يقومون إلا كما يقوم الذي يتخبطه الشيطان من المس ذلك بأنهم قالوا إنما البيع مثل الربا وأحل الله البيع وحرم الربا

[Al-Qur`an, 2:275]

يا أيها الذين آمنوا اتقوا الله وذروا ما بقي من الربا إن كنتم مؤمنين. فإن لم تفعلوا فأذنوا بحرب من الله ورسوله وإن تبتم فلكم رءوس أموالكم لا تظلمون ولا تظلمون

[Al-Qur`an, 2: 278-9]

فان تأجيله لا يصح … وعلي اعتبار الانتهاء لايصح لانه يصير بيع الدراهم بالدراهم نسيئة وهو ربوا

[Al-Hidayah, 3:76]

[2] يآ ايُّها الَّذين امنوا انّما الْخمر والميسر والانصاب والازلام رجس من عمل الشيطان فاجتنبوه لعلكم تفلحون

[Al-Qur`an, 5:90]

[3] عن أبي هريرة قال نهي رسول الله عن بيع الحصاة وعن بيع الغرر

[Sahih Muslim: 3170]

[4]

ولا خلاف بين أهل العلم في تحريم القمار

[Ahkam al-Qur`an li al-Jassas, 2:465, Dar Ihya at-Turath al-Arabi, Beirut]

وهو حرام بالنص القمار …

[Radd al-Muhtar ala ad-Durr al-Mukhtar, Kitab al-Hadhr wa al-Ibahah, 6:403]

Also see: [Fatawa Mahmoodiyyah, 16:387-340; Takmilah Fath al-Mulhim, 1:320; Ahsan al-Fatawa, 7:24-5]

For a detailed discussion see: [Islam aur jaded ma`ashee masa`il, 3:307-19, Idarah Islamiyaat]

[5] عن جابر قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء

[Sahih Muslim: 3403]

(وَكَاتِبَهُ وَشَاهِدَيْهِ) : قَالَ النَّوَوِيُّ: فِيهِ تَصْرِيحٌ بِتَحْرِيمِ كِتَابَةِ الْمُتَرَابِيَيْنِ وَالشَّهَادَةِ عَلَيْهِمَا وَبِتَحْرِيمِ الْإِعَانَةِ عَلَى الْبَاطِلِ

Mirqat al-Mafateeh, 5:1916, Dar al-Fikr

[6] [Al-Qur`an: 5:2]

Also see [Fatawa Dar al-uloom Deoband, 14:491]

من يشفع شفاعة حسنة يكن له نصيب منها ومن يشفع شفاعة سيئة يكن له نصيب منها

[Al-Qur`an, 4:85]

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