The insurance sector in Azerbaijan operates to protect the financial risks of citizens and enterprises and is mainly divided into two major categories: life insurance and non-life insurance.
Emil Agabaghirov, a member of the Association of Insurers, stated to Modern.az that life insurance types include life insurance providing payment in case of death, savings (investment) life insurance which serves both protection and savings functions, insurance against critical illnesses providing compensation in case of a critical illness specified in the contract, disability insurance providing payment in case of loss of working capacity due to accident and illness, as well as life insurance against industrial accidents providing payment in case of an accident during work.
He noted that these types of insurance provide financial security to people and their families in unexpected situations such as accidents, illnesses, and death.
The expert added that non-life insurance mainly covers property, liability, and other risks:
"The main types included in this category are: property insurance, construction insurance, cargo insurance against risks during the transportation of goods, motor insurance, liability insurance, medical and travel insurance, credit insurance, industrial risks insurance, and emergency insurance.
According to the expert, credit insurance is also a highly demanded type in Azerbaijan:
"This type of insurance is designed for the insurance company to pay the credit debt on behalf of the borrower in the event of any unfortunate incident happening to them."
Emil Agabaghirov said that a more beneficial type of insurance is survival insurance:
"In this type, the citizen receives both financial security and financial support in case of any unpleasant event, in return for the money they have paid. According to the contract, the person makes monthly payments to the insurance company for a certain period. If the citizen passes away before the contract period ends, the payments are returned to their relatives. If the person is alive when the period ends, the accumulated amount, along with an agreed interest, is paid to them."
The expert added that, according to recent statistics, the demand for credit insurance has increased. This is due to the growing interest in various types of loans taken out.
