DES MOINES, IA / Storyteller / Jun 30, 2026 /
New economic data underscores just how much is riding on Iowa’s insurance industry. As indicated in the Iowa Insurance Division’s 2025 report to the Governor, the sector generated a total economic impact of $36.3 billion, supported 103,260 jobs statewide, and produced an estimated $1.5 billion in direct and spillover state and local tax collections—roughly 6.5% of all state and local taxes collected in Iowa.
“Iowa’s insurance industry is a financial engine that funds our schools, lowers borrowing costs for our cities, and supports jobs in nearly every sector of our economy,” said Zach Keeling, board president of the Federation of Iowa Insurers. “These numbers are a reminder of what’s at stake: a competitive, predictable business environment is what keeps this engine running for all Iowans.”
Funding the Public Services Iowans Rely On
The industry’s $1.5 billion in 2024 state and local tax collections flowed through the revenue streams that fund core government operations and public services across the state, including:
● Individual income taxes: $518.2 million
● Property taxes: $302.5 million
● Sales taxes: $300.8 million
● Insurance division fees and premium taxes: $218.8 million
● Corporate income taxes: $35.1 million
● Other taxes and fees: $84.2 million
These collections were driven by the industry’s substantial payroll footprint, which generated $7.5 billion in direct and spillover wages and salaries, plus $703.9 million in self-employment income.
Lowering Costs for Local Governments and Taxpayers
Iowa’s insurers are also deeply woven into the state’s broader financial ecosystem. Nationally, insurance companies purchased 9.2% of the $4.1 trillion in municipal securities bought in 2024, and Iowa insurers are estimated to hold approximately $2.1 billion of the $23.5 billion in Iowa municipal bonds outstanding.
That demand matters for every Iowa community. By supporting higher bond prices and lower interest rates, the industry helped reduce municipal borrowing costs by an estimated 0.32 percentage points, saving Iowa’s local government agencies approximately $76.6 million in a single year. Those savings translate directly into more affordable schools, roads, water systems, and public facilities.
A Growth Engine That Reaches Every Sector
The industry’s impact extends well beyond finance. Every 1,000 insurance jobs in Iowa supported an additional 1,182 jobs in other industries in 2024, with measurable spillovers including:
● Real estate: $509.4 million in business volume; 1,679 jobs
● Commercial banking: $477.7 million; 1,740 jobs
● Hospitals: $280.6 million; 1,344 jobs
● Funds, trusts, and other financial vehicles: $233.8 million; 681 jobs
● Wholesale trade: $223.1 million; 716 jobs
These are high-quality jobs, too: positions supported by insurance spending in Iowa carry a 15.7% pay premium over the statewide average, while average wages in the direct insurance industry reached $112,428 per worker—78% above the average for all Iowa workers.
Iowa now ranks #2 in the nation for insurance industry concentration, effectively exporting insurance services to the rest of the country and bringing outside revenue home to Iowa. The state’s insurance workers are also among the most productive in the nation, generating $316,434 in value added per worker in 2024—22.8% above the U.S. average.
Built on Innovation-Friendly Policy
Iowa’s insurance industry leadership is no accident. The Iowa Insurance Division’s open-door approach to innovators allows new insurance products and InsurTech pilots to be reviewed confidentially and guided to market. Recent legislative milestones have kept Iowa’s regulatory framework modern and competitive.
Institutions like the Global Insurance Accelerator, which has hosted 36 startups from eight countries and recently increased its seed funding to $75,000 per venture, continue to make Des Moines a global magnet for insurance innovation.
Legislative Wins from the 2026 Session
As the 2026 legislative session concluded, the Federation and its members also celebrated the passage of two key priorities that further strengthen Iowa’s insurance and financial services landscape:
● Legislation modernizing annuity regulation by exempting Contingent Deferred Annuities from the Standard Nonforfeiture Law, giving Iowans access to innovative retirement security products.
● Permissible Third-Party / Senior Protection legislation, which helps financial professionals prevent the financial exploitation of older Iowans.
Both measures passed the General Assembly unanimously and were signed into law by Governor Kim Reynolds.
“These outcomes reflect the value of collaboration between industry leaders, policymakers, and regulators,” Keeling added. “They are exactly the kind of forward-looking, consumer-focused policymaking that keeps Iowa at the front of the pack in insurance and financial services.”
With the 2026 legislative session now adjourned, the Federation encourages policymakers to continue exploring ways to ensure Iowa remains competitive, forward-thinking, and works to sustain the talent pipelines flowing from Iowa’s nation-leading actuarial and finance programs and continue modernizing the legal frameworks that allow financial services innovation to flourish.
For more information on the Iowa insurance landscape, visit federationofiowainsurers.com.
About the Federation of Iowa Insurers
The Federation of Iowa Insurers is a state trade association representing Iowa’s life, health, and financial services industry doing business in Iowa. The Federation advocates for a competitive business environment that fosters innovation, job creation, and economic security for all Iowans.
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Media Contact
Lee Henderson
515-288-0375
lee.henderson@brownwinick.com
https://federationofiowainsurers.com/
Disclaimer: This press release is provided for informational purposes only. Economic impact estimates, legislative summaries, and policy discussions are based on the sources identified in this release and reflect the views of the Federation of Iowa Insurers. Nothing in this release should be construed as legal, tax, investment, or financial advice.
