Florida Insurance Executives Earn Millions as Homeowners Face Rising Costs
In the midst of Florida’s volatile insurance market, Tampa-based Slide Insurance has made headlines for the hefty paychecks its top executives receive. Bruce Lucas, the company’s CEO, and his wife Shannon Lucas, the COO, have been paid more than $50 million combined over just two years. This eye-watering sum has been earned while thousands of Florida homeowners struggle with rising insurance premiums and dwindling choices.
In 2024 alone, Bruce Lucas raked in $21 million, while his wife Shannon earned $16.5 million. This follows their combined earnings of over $12 million in 2023. Their total two-year compensation far surpasses what most other Florida insurance executives make. Notably, Shannon Lucas’s earnings even exceeded those of the CEOs of insurance giants Liberty Mutual and Progressive.
The couple’s financial windfall is closely tied to Slide’s rapid growth, largely fueled by policies offloaded from Citizens Property Insurance, Florida’s state-backed insurance company. When Citizens transfers policies to private insurers like Slide – often within 20% of the original rate – many homeowners find themselves involuntarily switched to these new providers. Since 2023, Slide has taken over more than 230,000 policies from Citizens and now holds over 340,000 policies across Florida.
This swift expansion has generated substantial profits for Slide. In its first full year, the company made $87 million, doubling its profits to over $200 million the following year. Meanwhile, many Florida homeowners continue to grapple with some of the nation’s highest insurance rates.
Consumer advocates and lawmakers have voiced their discontent with the situation. Douglas Heller from the Consumer Federation of America described the executive payouts as “grotesque,” particularly given that many policyholders were forced into Slide without their consent. Heller also raised concerns about Slide’s heavy reliance on reinsurance, a financial protection mechanism for insurers against large-scale disasters like hurricanes. The unstable and costly nature of reinsurance, especially in Florida, poses significant risks to policyholders if Slide encounters financial difficulties.
Florida’s insurance market has experienced turmoil in recent years. Between 1999 and 2023, ten local insurance companies collapsed, and several major national insurers have withdrawn from the state entirely. This has created opportunities for newer companies like Slide to enter the market, despite the associated risks. For Slide, these risks are translating into substantial rewards, while Florida homeowners are left paying more for potentially less comprehensive coverage.
State Rep. Hillary Cassel, who represents homeowners in insurance cases, attempted to pass legislation this year that would have made it easier for individuals to challenge insurers in court. Although the law didn’t pass, Cassel points to Slide’s executive compensation as a prime example of the consequences of inadequate oversight. Critics argue that while insurers like Slide reap significant profits, policyholders continue to face issues such as denied claims, slow payouts, and rising costs.
As Florida enters another hurricane season, concerns are growing that the situation could worsen if major storms hit and companies like Slide struggle to handle the influx of claims. With the likelihood of more frequent storms in the coming years, this risk is a worrying prospect for homeowners and regulators alike.
