THE board of the VHI met last night to begin the process of the appointing a new chief executive.

Board members are understood to be keen to find a new chief executive as soon as possible, to begin preparations for the challenge from the British healthcare giant, BUPA.

The board, it is thought, will look outside the organisation rather than opt for an internal candidate. The appointment would have to be approved by the Minister for Health, Mr Noonan.

Any new appointment is almost certain to be by way of a contract, allowing the board to offer a salary above the normal guidelines to the incoming chief executive. Mr Duncan had been on a five year contract.

The departing chief executive Mr Brian Duncan, resigned after a report from a board sub committee called for his contract to be terminated. Mr Duncan is due to resign formally on October 18th.

He is the second successive chief executive to resign from the VHI. Former chief executive Mr Tom Ryan, resigned two years ago.