WP5, led by Imperial College London, seeks to ensure that the regulatory environment of each sourcing country is conducive to the ARISE insurance products and services.
Importantly, the team will uncover regulatory or policy ‘bottlenecks’ to the use of insurance mechanisms and work with relevant institutions and policymakers to identify ways forward. Assessing the regulatory and policy frameworks in each sourcing country will support the delivery of risk mitigation services that can achieve climate and weather resilient and sustainable supply chains.
Critically, contracts need to be honoured and enforced through access to arbitration, dispute resolution, and financial education, in particular for smallholder farmers.
As even the insurance industry is fraught with risk – moral hazards, adverse selection, correlated risk – and smallholders face significant challenges to financial inclusion, WP5 will also set the direction for placing user protection at its core, effectively ensuring that the insurance products or services are appropriately contracted, regulated, and supervised, with an emphasis on safeguarding the rights of smallholder farmers. Critically, contracts need to honoured and enforced through access to arbitration, dispute resolution, and financial education, in particular for smallholder farmers. Monitoring mechanisms embedded into contract design and structure will help ensure compliance with contractual terms.
WP5 also serves as the policy engagement arm of the ARISE project, seeking to identify synergies and influence wider debates regarding the use of risk mitigation products and services to insulate food supply chains from climate and weather driven disruptions. As an innovative model for building supply chains that are more resilient to climate and weather threats to production, WP5 will be able to offer insights and policy recommendations based on practical experience from project countries.