LGBT community gets ‘we’re on your side’ Pride boost
THE co-founders of a fledgling company specialising in insurance services for lesbian, gay, bisexual and trans people have visited the North West on the eve of the traditional Manchester Pride parade over the Bank Holiday as part of their mission to wipe out discrimination and bigotry in their industry.
Emerald Life executive chairman Steve Wardlaw and chief executive Heidi McCormack have identified a gap in the market in a sector which is traditionally conservative with a small ‘c’.
The duo, pictured, who left high-flying jobs to launch the company, point to research that says “eight out of 10 LGBT people say their needs are not being met by the insurance industry.
The LGBT community represents about 6% of the UK population – about 4.5 million people. However, those people are 32% less insured than the straight population.
In addition to the insurance market, Wardlaw and McCormack reckon their anti-discrimination business model could also be rolled out in care for the elderly, health care and financial and legal services, where they say discrimination against LBGT is commonplace.
“We launched Emerald Life to provide insurance for an under-served part of the market,” said Wardlaw. “We did a lot of listening. In partnership with YouGov, we addressed the hopes and fears of the LGBT community – breaking it down into the gay capitals of London, Brighton and Manchester.
“But we are also doing the same thing in Edinburgh, Cardiff and Birmingham.”
Although their business model is targeted at the LGBT community, about 20% of the Emerald Life client base is straight.
“They are straight like I am,” said 51-year-old American McCormick, a former banker and private equity specialist who headed up General Motors’ Russian division for 13 years until 2010. “But they are the sort of people like me who don’t like discrimination.”
The Emerald Life proposition focuses on two areas of influence – products and services.
Wardlaw explained: “We have a call centre in Ipswich with about 18 staff dedicated to Emerald Life. They are trained not to ask awkward and intrusive questions which may force people to ‘come out’ over the phone. This can be a traumatic and distressing process for many LGBT people.
“On products, we have very robust cover for home and weddings. We have legal expenses cover so if someone gets substandard goods or services due to their orientation a discrimination claim can be made.
“Similarly, with weddings, if a wedding venues refuses to carry out a ceremony because it’s same-sex – which is unlawful – we have discrimination cover, so a claim can be made.
“In travel, we have consular assist, set up by a group of senior ex-diplomats for if people are arrested because of their sexuality. We are also working with charities to try to change the law in 78 countries where it is still illegal to be gay. Most of these are Commonwealth Countries, sadly.”
Wardlaw and McCormack are particularly keen to fight bigotry in relation to people with HIV.
“People with HIV are often excluded from getting travel insurance, or the premium is loaded up because the company doesn’t want their business,” said Wardlaw.
“Only one supermarket travel insurance policy doesn’t load up the premium for people with HIV. This is extreme laziness, as people with HIV nowadays often have greater life expancy because they are going for more frequent health checks.”
McCormack added: “The insurance sector is a very conservative with a small ‘c’ sector. The companies make their money by unfairly pricing risk.
“We are enjoying this, because we are from outside the insurance industry. We are ones to be told ‘this is how you do it’.”
Wardlaw, 47, is the former partner of a Texas law firm, brought up in Guildford.
McCormack, brought up in Washington DC spent a total of 25 years working in Russia and speaks five languages.
While working for General Motors, she grew its sales from $15m to $500,000 and its brand offering from two to five.
They were neighbours in Moscow when Wardlaw and McCormack first discussed the LGBT insurance issue.
“I told him, stop talking about it and just do it (launch Emerald Life),” she said about her business partner.
Speaking of the scope to extend the service to the care sector, Wardlaw said: “The scope is there for a business in other sectors. Because the reality is that many LGBT elderly people go back into the closet when they go into a care home.
“That’s because they are surrounded by people who are being visited by a conventional family and they feel isolated. I can envisage specifically LGBT sympathetic – but not exclusive – care homes.”
