Economic Development

Economic Development > Insurance Initiative

Insurance Initiative

The insurance industry is becoming increasingly complex and competitive. Today, insurance companies are competing for both customers and employees like never before. As a result, industry executives are seeking new and innovative strategies to strengthen their position in this marketplace.

Iowa is committed to the insurance industry and remains one of the top locations in the country for insurance companies. In the last few years, Iowa's pro-business, insurance-friendly legislative landscape has drawn approximately fifteen (15) insurance companies, produced $250,000,000 in capital investment, and created 2,500 new jobs in this growing industry.

Siouxland is dedicated to the insurance industry and is both eager and prepared to accommodate your next expansion project. Enjoying all the benefits of Iowa's favorable insurance legislation, not only is Siouxland the ideal place for your insurance company, it is also a great place for your employees to call home.

Iowa's insurance industry is the beneficiary of a well-educated, motivated and highly productive workforce. Iowans continue to place a high priority on education and consistently rank first or second among the fifty (50) states on national college entrance exams (ACT and SAT). Additionally, the cost of labor in the Midwest is very reasonable, making Iowa an ideal and cost effective location for your insurance company.

Iowa's business climate is new and improved and now more conducive than ever to an insurance company's success. In 2002, the Governor and State Legislature implemented legislation cutting Iowa's insurance premium tax from two percent (2%) to one percent (1%) over a four (4) year period. This change is already generating significant savings for insurance companies domiciled in Iowa. Once these tax reductions take full effect, Iowa's insurance premium tax rates will be among the lowest in the nation.

Unlike many other states, Iowa does not assess any additional surtaxes or income taxes on insurance carriers. Further, Iowa does not charge premium taxes on sales of annuities or qualified life insurance plans. Other tax advantages include no sales or excise taxes on interstate or international telecommunications services, and no sales taxes on computers or related equipment.

Iowa has served as a model for other states beginning to change their own insurance laws, having launched and perfected initiatives to support the insurance industry. Iowa also continues to play a leadership role in the National Association of Insurance Commissioners (NAIC). Iowa was among the first states to adopt:

Legislation authorizing the purchase of a "corporate shell," the charter and inactive license of a domestic insurer that has been liquidated. This can save companies time and effort in beginning operations and selling in multiple states, by reactivating old licenses rather than obtaining new ones.
A "Port of Entry" procedure for international insurance companies providing ease of entry to the U.S. market through Iowa. This "Port of Entry" law treats a U.S. operation of an international insurer as a domestic Iowa insurer.
Legislation allowing mutual insurance companies to reorganize into mutual insurance holding companies, granting them greater access to capital.

Our tradition of excellent insurance regulation means that Iowa's Insurance Division is firm, but fair, which serves the interests of both the insurance industry and consumers. Perhaps most importantly, Iowa's insurance regulators are responsive. Insurers doing business in Iowa will find an open-door policy that allows them to anticipate and solve problems, develop new products, and receive expedited decisions. Companies seeking to re-domesticate to Iowa are given clear and helpful guidance on how to become an Iowa-based insurer.

Sioux City is home to extremely cost efficient office space. When comparing price per square foot, we are a national leader in affordability. Whether you need 2,000 square feet, 50,000 square feet, or 100,000 square feet, downtown Sioux City has a building to suit your needs. Downtown space is connected by a thirteen (13) block skywalk system, ample parking, and easy access to T1 and fiber capabilities. The downtown office buildings are loaded with amenities to provide your business and staff a beautiful and convenient work environment. Click here for available buildings.

The City of Sioux City and the State of Iowa have many incentive programs. These programs may be utilized provided they meet certain job creation and capital investment criteria. Many of the programs are administered through Sioux City's Department of Economic Development or Western Iowa Tech Community College.

In order to obtain labor characteristics for the Insurance industry, data is extracted from the Siouxland Laborshed Study to provide quantifiable information from which potential employees may be selected. In addition, Siouxland 's aggregated wage data was extracted from the Iowa Wage Survey to provide information on local wages broken down by occupation. People with experience or transferable skills in the insurance industry are currently commuting an average of eight (8) miles one-way, however, they also report they are willing to commute an average of twenty-five (25) miles each way for the right employment opportunity.