Financial Services

Financial Services: Invested in Iowa

Iowa is widely regarded as a major center for the insurance and financial services industries, thanks in large part to its innovative approach to fostering business development. For the last few decades, the state has been committed to policy that creates favorable conditions for existing financial services companies and draws out-of-state business and corporations to develop in Iowa. Iowa’s insurance industry continues to grow creating thousands of new jobs across the state.

As of September 2009 there were 162 property and casualty insurance and county mutual insurance companies domiciled (headquartered) in Iowa. In addition, there are 26 life insurance companies and six health and maintenance organizations (HMO). In recent years, Iowa’s financial services industry created 7,000 new jobs and attracted more than $887 million in new investment. Iowa’s insurance industry output as a percent of gross domestic product ranks second among the 50 states and Iowa is 10th largest among the states with an insurance industry annual economic activity of over $16.1 billion in 2008.

Iowa is now home to more than 6,000 insurance and financial firms employing more than some 81,000 employees, including a number of industry heavyweights that have reaped the benefits of Iowa’s pro-business climate, resulting in direct financial assistance, tax advantages and a supportive regulatory climate.

• Iowa’s low insurance premium tax, at just 1 percent, is one of the lowest rates in the nation.
• Iowa does not charge premium taxes on sales of annuities or qualified life insurance plans.
• Iowa does not assess any additional surtaxes or income taxes on insurance carriers.
• Iowa’s new jobs training program provides funding for various costs associated with new worker training and education.

The Kelly Insurance Center at Drake University [www.kic.drake.edu] in Des Moines provides professional development and continuing education programs tailored to the needs of the insurance industry. The University of Iowa has the second oldest actuarial science program [www.stat.uiowa.edu/actuarial/] in the nation.

Other Targeted Industries

• Advanced Manufacturing — Advanced manufacturing is a major driver of the Iowa economy and the critical mass of expertise here is worth investigating if your company is seeking a competitive advantage.
• Renewable Energy — Iowa is a recognized leader in renewable energy production through wind, biomass, ethanol, cellulosic ethanol, and biodiesel.
• Biosciences — Iowa has a rich heritage of research and innovation in the biosciences industry. From start-up companies to globally respected names in biotechnology, Iowa is creating breakthroughs from better nutrition to life-saving medicine and renewable industrial products.
• Information Technology — Iowa may be known for some of the world’s most fertile cropland, but in recent years, it’s been fertile ground for rapid growth in the information solutions sector as well.
• Food Manufacturing — From ingredients and finished foods to processing and packaging machinery, Iowa is the birthplace of many food industry innovations.

To Learn More:

Phone: 515.725.3100 or 800.245.4692
E-mail: business@iowa.gov