Theoretical frameworks are essential for understanding complex systems such as agricultural insurance programmes aimed at smallholder farmers in Uganda's rural areas. Theoretical development will draw on existing literature, expert interviews, and case studies to construct a comprehensive theoretical model. The theoretical framework highlights the importance of aligning risk management practices with financial inclusion goals to effectively support smallholder farmers and improve agricultural productivity in Uganda's rural settings. To maximise the impact of future agricultural insurance programmes, it is recommended that policymakers integrate education on financial literacy alongside insurance coverage options, ensuring sustainable long-term benefits for participating households.