THE VHI has begun its search for a Dew chief executive. A six member sub committee of the board is considering the appointment of an outside consultant to act as chief executive on a short term or interim basis in a bid to prepare the group for the challenge from the British healthcare group, BUPA.

The committee - which includes chairman, Mr Noel Hanlon, and directors, Mr Paul Coulson, Mr John O'Connor, Mr Phil Flynn, Ms Ann Fitzgerald and Dr John Keane - has said it expects to report back to the board on a suitable candidate very shortly.

A spokesman for the VHI said yesterday that no decision had yet been taken on whether the position would be advertised.

The departing chief executive, Mr Brian Duncan, is due to leave the organisation on October 18th next. It is understood that the board is anxious to have selected a candidate by that date to allow for smooth transition.

Meanwhile, BUPA is continuing to build up its Irish management team. Yesterday the British health insurer announced the appointment of Mr Sean Murray as its new marketing director in the Republic. Mr Murray joins BUPA from Waterford Foods, where he was marketing director of its consumer products. The group, which is due to open for business in the Republic by the end of the year, has said its preparations are progressing "on target".

BUPA plans to provide a range of insurance and health care products which are tailored to the Irish market. It will have offices in Dublin and Cork, employing up to 40 people initially.