AIB is taking a 30% stake in Vivas Health, a new private owned health insurance company, which was launched today. Dermot Desmond's IIU is also a stakeholder.
Commenting on the emergence of this new market entrant, the Chief Executive of the Health Insurance Authority, Dermot Ryan, said the Authority welcomed any increase in competition in private health insurance in Ireland that delivered value-for-money benefits to, and acted in the best interests of, the health insurance consumer.
The chief executive of Vivas, Oliver Tattan, and its Finance Director, Stephen Loughman, both previously worked for VHI.
Vivas Health is offering 'Me', 'I' and 'We' plans which are tailored for young individuals, people in their late 20's to early 30's and families with children, respectively. Customers can choose between two and five levels of cover under the various plans.
'This company is bringing a whole new model to the health insurance market and through its innovative approach to product development and commitment to educate the market, it is going to bring significant change,' commented company chairman Cecil Hayes.
'The private health insurance market is characterised by lack of information, lack of competition and consumer inertia,' said Vivas CEO Oliver Tattan. 'The arrival of Vivas Health will result in real competition in the private health insurance sector in Ireland for the first time,' he added.
AIB has received IFSRA approval for the ¦7m investment in Vivas and will have two members on the Vivas board, Billy Andrews and Maurice Crowley.
In addition to investing in Vivas Health, AIB also proposes to distribute its products. This will see it as the first bank in the Irish market to offer health care insurance to its customers.
