The existing life insurance products in Azerbaijan will be presented in a new format. Alternative life insurance offerings include burial insurance for final expenses, critical illness cover for serious health issues, mortgage protection insurance to cover home loans, and guaranteed issue policies for those who can't get traditional coverage.

Other options involve setting up a self-funded plan by saving and investing, securing coverage through employer-provided group plans, or exploring asset-based or combination policies that can provide long-term care benefits and a death benefit, according to Vusal Gurbanov, Director General of the Central Bank of Azerbaijan (CBA), Trend reports.

CBA Executive Director Shahin Mahmudzade added that last year, it was noted that employees of state enterprises could not benefit from this service. “There is sufficient potential to replace it. We based this potential on the structure of the labor market, where about half of the workforce is in the public sector and the other half in the private sector. Therefore, the number of clients discussed here is not very large”, he said. Mahmudzade emphasized that the private sector has enough labor force to compensate for the decline in the public segment.

“If insurance companies can attract these employees, there should be no overall decline. The market has the capacity to offset the reduction in the state sector”, the CBA Executive Director noted.