IOWA – HUNGRY FOR INSURANCE BUSINESS
Since 1988, Iowa has instituted an aggressive program to create an attractive environment for insurance businesses, including:
- Cutting premium taxes in half
- No sales or excise taxes on instate or international telecommunications services
- No sales taxes on computers or related equipment
- A “port of entry” procedure that allows international insurers to act as domestic Iowa insurers
- An “open-door” policy between regulators and companies allowing quick review of new products and rapid resolution of disputes
- Incentive programs tied to job creation
In addition, Iowa has an aggressive marketing effort, spearheaded by state and local leadership, to contact insurers and promote the state as a home for insurance companies from other states.
As a result, Iowa now ranks second behind Connecticut in insurance business as a percentage of its total economic output. Since 1988, the number of insurance jobs in Iowa has increased 42%, compared to overall state job growth of 10%. In the past six years, 20 insurance companies have announced new or expanded facilities in Iowa, with over $298 billion in new investments, creating more than 2,600 jobs.
