About Companies or Entities
IDOI provides a friendly insurance tax environment, a fair and reasonable civil justice system, access to a trained insurance force, a positive regulatory climate and a stable judiciary.
Reasons to Base Operations in Indiana
Friendly insurance tax environment
As of January 2005, the Indiana premium tax rate is 1.3 percent, which minimizes a domestic's retaliatory tax exposure when doing business in other states. Domestic insurers may opt to pay the premium tax or the corporate gross income tax.
Fair and reasonable civil justice system
The tort reform act of 1995 emphasizes personal responsibility. Key elements include applying comparative fault, rather than strict liability to products liability cases dealing with defective design or failure to warn, restricting the awarding of punitive damages and allowing any person who caused or contributed to an injury to be named as a non-party.
Access to trained insurance force
There are 60,240 company employees and agents working in Indiana. A number of state universities maintain significant insurance programs.
Positive regulatory climate
Indiana has consistently been rated one of the top states for commercial lines by the Property and Casualty Insurance Association of America (PCIAA).
Stable judiciary
The Indiana Supreme Court has been more constructionist in its holdings than most states. It has supported the industry in rulings impacting punitive damages, workers' compensation exclusive remedy and in-house counsel.
Marketing
- In 2005, the insurance premium tax reached a five-year phase-down rate of 1.3 percent.
- Indiana has one of the most favorable demutualization laws in the country. It provides the cleanest process for converting mutual companies into stock companies and avoids depleting the converting company's cash and surplus.
- Indiana State University is recognized by Business Insurance Magazine as one of the three schools nationally to offer undergraduate courses that expose students to all aspects of property/casualty and life/health insurance, as well as risk management techniques and concepts.
- Insurance training is being introduced at the high school level in cooperation with InVEST to educate teenagers about insurance, to encourage their interest in considering insurance as an occupation and to generate additional interest in the Indiana State and Ball State insurance major programs.
National Rankings
Indiana was recently ranked the best commercial lines insurance market in the nation.
Indiana ranks in the top 15 states for lowest homeowner insurance premiums.
Indiana ranks in the top 20 states for lowest automobile insurance premiums.
*Sources: Insurance Information Institute; National Association of Independent Insurers
Employment
The insurance industry is one of Indiana's largest employers. Based on 2002 revenue, three of Indiana's 20 largest private companies are insurance companies.
INDIANA EMPLOYEES
Farm Employment 70,744
Insurance 60,240
Building Construction 57,740
Chemical Manufacturing 33,547
Food Manufacturing 32,673
* Source: Center for Rural Development at Purdue University, 2004 Study
Wages
Indiana insurance carriers pay $2.9 billion in direct income to Hoosiers and $1.6 billion in indirect or induced income. The average wage paid to Hoosiers by carriers is more than $10,000 above the state's average wage for all industries.
EMPLOYEE AVERAGE SALARY
Motor Vehicle Manufacturing $52,098
Insurance Carriers $47,493
Construction $38,492
Hospitals $35,767
* Source: Center for Rural Development at Purdue University, 2004 Study
Economics
Indiana's insurance industry has a huge impact on the state's economic health. Consider the following:
- Insurance premium tax receipts and retaliatory fees totaled more than $179 million in 2004.
- Indiana's insurance carrier employees and agents contributed nearly $3.8 billion to the Gross State Product in 2001.
- According to the Indiana Department of Insurance, there are 180 insurance companies and farm mutual’s domiciled in Indiana.
- Indiana has approximately 1,780 insurers licensed in the state.
- F.I.R.E. (Finance, Insurance & Real Estate) combined ranked third in the state in contributions to the Gross State Product in 2001.
*Sources: The Center for Rural Development, Purdue University, 2004 Study; Indiana Department of Insurance; Bureau of Economic Analysis
To Learn More
To get more information about Indiana's insurance industry, contact:
Insurance Institute of Indiana
317.464.2450
Association of Indiana Life Insurance Companies
317.684.5402
Independent Insurance Agents of Indiana Inc.
317.824.3780
Professional Insurance Agents of Indiana Inc.
800.555.9742
Indiana Economic Development Corporation
317.234.2084
Indiana State Association of Health Underwriters
317-844-6268
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- File a complaint.
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- Check out a health care provider.
- Find a company's registered agent.
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- File a medical malpractice complaint.
- Learn about Medicare.
- Compare Medicare Supplement plans.
- See what enforcement actions IDOI has taken.
- Learn about COBRA coverage.
- Know my HIPAA rights.
- Form an insurance company.
- File financial information for my insurance company.
- Qualify under Indiana's Medical Malpractice Act.
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- Contact SHIP for information.
