This case study is organized as follows. First, how index insurance works and why there is significant excitement around it as a poverty alleviation tool is explained. Next, the pilot insurance project in Peru is described. The following section then turns to the encouragement design. After laying out the general logic of randomized encouragements and the specific impact evaluation questions that it can (and cannot) answer, the specific methodology used in Peru is explained. The last section concludes with some general (and hard learned) lessons from this specific research design experience.