THE VHI board is to meet next Monday to consider the appointment of a new chief executive. It will be the first meeting of the board since the resignation of the former chief executive, Mr Brian Duncan, and its members are understood to be keen to appoint his successor as quickly as possible.

It was not clear last night whether the board would favour the appointment of an internal candidate or opt to seek an outside appointment. If the former route is chosen, sources believe Mr John Looney, the assistant chief executive finance, would be one of the leading candidates.

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 successful candidate. Mr Duncan had been on a five year contract.

A number of board members are believed to want the appointment sorted out as soon as possible so that the VHI can prepare for the entry of BUPA to the market by the end of the year.

The VHI needs to launch new products to attract younger customers and must also sort out its relationships with healthcare providers, such as the private hospitals.

If the VHI cannot sort out these relationships and BUPA can, the British company may be able to offer Irish consumers more attractive packages.

Mr Duncan resigned a week ago, after agreeing a settlement package with the board. A report of a four person board sub committee had criticised his management style and recommended that his contract be terminated. Mr Duncan strongly rejected the findings of this report, which he said were unjust.

Mr Duncan is the second chief executive to depart in the last two and a half years. In early 1994, Mr Tom Ryan resigned after disagreeing with chairman Mr Noel Hanlon on his role.