Abstract
<jats:p>Insurance mechanisms and risk management in the leasing market are of particular importance in ensuring financial security and maintaining economic stability. During leasing operations, various risks—market, financial, and legal—may arise. These risks generally occur in situations such as damage to the leased asset, failure of the client to fulfill obligations, and economic fluctuations. In such cases, insurance is considered the most effective tool to protect the interests of both the lessor and the lessee, which is why its implementation in the leasing sector is essential. Insurance ensures the safety of the leased asset, increases trust between parties, and contributes to financial stability. Leasing companies cooperate with insurance institutions to prevent risks, analyze clients’ financial capabilities in advance, and establish precautionary mechanisms to mitigate potential losses. In Azerbaijan, the application of digital technologies in the leasing market and the adoption of international experience enable more effective risk management. This approach promotes the development of the leasing sector and has a positive impact on the country’s overall economic stability</jats:p>