Commercial insurance is generally considered haram in Islam due to the following reasons:

1. Riba (Usury/Interest): Insurance involves elements of riba where the premium paid may not correspond to the benefit received.
2. Gharar (Uncertainty): Insurance contracts involve excessive uncertainty about the compensation and the occurrence of the insured event.
3. Maysir (Gambling): There is a gambling aspect as policyholders may either gain significantly more than they paid in premiums or receive nothing at all.

Both life insurance and property insurance fall under this prohibition.

However, there are exceptions:

• Necessity: It may be permissible to engage in insurance if a person is forced to do so by law or if there is no alternative (e.g., mandatory car insurance).

Co-operative Insurance: Also known as Takaful, where risk is shared among participants and operates on the basis of mutual assistance and shared responsibility, is generally considered permissible in Islam.

Conclusion: Commercial insurance is haram, but co-operative insurance (Takaful) is allowed. In cases of necessity or compulsion, dealing with insurance may be permissible.

Sources:

1. IslamQA: Is insurance haram?
2. IslamQA: Is health insurance prohibited in Islam?