CONTENT FROM THE IOWA ECONOMIC DEVELOPMENT AUTHORITYIOWA IS WELL-KNOWN FOR ITS ABUNDANT CORNFIELDS,
strong work ethic, and spirited caucuses that
launch the presidential primary process every
four years. But in the last five years, the state has
also experienced a boom in its business sector—
boasting GDP growth of 45% in the insurance and
financial services sectors alone. By attracting
some of the largest companies in those indus-
tries, Iowa has cemented itself as one of the
nation’s top insurance and finance hubs.
“Iowa offers a pro-business environment
where innovation and growth aren’t only encouraged,they’re incentivized,” says Michael Gould, man-
ager of business development, Iowa Economic
Development Authority (IEDA).
One clear incentive is the state’s insurance
premium tax rate—at just 1%, it’s one of the
lowest in the country. Additionally, state leaders
have enacted policies and programming that help
finance and insurance companies hire, train, and
employ more skilled workers. For example, Iowa
public colleges and universities offer 24 bachelor’s
degree programs in accounting and 21 bachelor’s
degree programs in finance, as well as three of
the top 25 actuarial science degree programs in
the country, which create a rich pipeline for the
state’s insurance firms and financial institutions.Nurturing Innovation
Thanks to the state’s forward-thinking vision for
the insurance industry, it’s no surprise that Iowa
is the birthplace of numerous advancements in
insurtech. Several of these advancements trace
their origins back to Iowa’s Global Insurance
Accelerator (GIA), the world’s first business
accelerator specifically geared toward insurance
technology. Founded in 2015, GIA is a mentor-
driven program designed to foster innovation by
connecting well-established insurance compa-
nies with startups that are driving the future of
the global insurance industry. During the 100-day
immersive experience, early-stage startups can
glean insights about the industry from execu-
tives to whom they may not have otherwise had
access. In turn, executives are able to see
firsthand emerging technologies that could
advance the field.Safeguarding Interests
But it’s not just about insurance and finance in
Iowa. State agencies have also been particularly
helpful in the midst of COVID-19, going the extra
mile to support impacted businesses through re-
lief grants, tax deferrals, assistance with access
to federal resources, and workforce development
initiatives. Thanks to these targeted efforts, Iowa
has seen minimal business closures, despite the
national and global challenges created by the
pandemic.
“Iowa’s diverse economy provides the ideal
climate for business growth and innovation,”
says Gould. “Our nationally recognized research
centers and low cost of doing business give com-
panies operating in the state a huge competitive
edge.”
And as businesses reopen and rethink what’s
next, there’s no doubt many of them will have
their eye on the Hawkeye State. ■WHY IOWA IS POISED
TO BECOME THE NEW
INSURANCE CAPITAL
OF THE NATION
A pro-business environment is drivinga statewide expansion of the insuranceand financial services industries.