Iowa also has a more accommodating attitude toward annuities, according to Brendan Bridgeland, director of the Center for Insurance Research, a Cambridge, Massachusetts-based nonprofit. Some of the largest sellers of indexed annuities have insurance units in Iowa, including Athene, No. 3 provider American Equity Investment Life Holding Co. and ING U.S. Inc.

Insurers “want to deal with a regulator who is up to date and interested in working with companies when it comes to approving and reviewing new products,” Bridgeland said. “That’s certainly where Iowa stands out.”

One of Iowa’s U.S senators, Tom Harkin, helped the state retain its position as a center for indexed annuities. When the Securities and Exchange Commission discussed taking over regulation of the products a few years ago, Harkin sponsored a Dodd-Frank amendment to leave oversight with the states.

In a 2010 letter, the Consumer Federation of America said Harkin’s proposal “would open a gaping hole in investor protections,” and “would encourage a race to the bottom among states.” The Harkin measure became part of the law.

‘Sophisticated’ Approach

Fidelity & Guaranty, which got 95 percent of its 2013 sales from fixed indexed annuities, moved to Iowa because the state has a “sophisticated regulatory approach to indexed products, and strong business climate,” CEO Launer said in a statement.

Symetra has said it is seeking to expand that product line. Switching to Iowa “obviously gives us an opportunity to create a captive, but it’s also a good environment for indexed annuities,” Symetra’s CEO Marra said on a conference call with analysts in January.

Gerhart, who worked at American Equity and Sammons Financial Group before being appointed to his current role in 2012, said Iowa has developed expertise in indexed annuity and life insurance products. The state has staff dedicated to reviewing them and has taken the lead, after consumer complaints, in developing standards for product sales, he said.

More recently, the regulator has been involved in rules for how indexed life insurance is sold, Gerhart said.

‘General Understanding’