John O’Dwyer has been appointed CEO of Irish
health insurer Vhi Healthcare, with a general starting salary
in excess of that recommended by the Irish government.
O’Dwyer will be joining Vhi Healthcare from
the international Dutch insurance group Achmea. He is currently on
secondment to their Greek company ‘Interamerican’, the second
biggest insurer in Greece where he is the chief operating officer
and executive director with responsibility for the life, general
and health businesses.
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O’Dwyer will receive a salary of €238, 727
($300,510) which exceeds the general starting salary of €191,014
for newly appointed chief executives of commercial state-sponsored
bodies as indicated by the Republic of Ireland’s Department of
Public Expenditure and Reform.
A spokesperson for the Department of Public
Expenditure and Reform explained that while the general starting
rate indicated for VHI was €191,014, it was also indicated that a
small number of exceptions may be necessary.
The spokesperson said: “The rate approved is
€238,727 which is significantly lower than the salary of the
previous CEO who was on a salary of €312,061 and performance
related pay of up to 50%.”
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By GlobalDataThe spokesperson added that given the very
significant challenges facing VHI: “It is essential to attract a
person with the necessary commercial and leadership skills to
successfully steer the organisation through a rapidly changing
environment.”
Commenting on O’Dwyer’s appointment, Vhi Healthcare chairman
Bernard Collins Vhi’s board is delighted to welcome O’Dwyer to the
organisation.
In December 2010, Life Insurance International reported
that VhiHealthcare had lost approximately 120,000 customers during
2009.
In recent times, Vhi is still suffering from
its legacy as Ireland’s first – and, for a long time, only –
provider of private health insurance (PHI).
This has left it with an ageing client group
while its main competitors could “cherry pick younger
customers”.
In the June 2011 edition of Life Insurance
International aspokesperson from Vhi Healthcare said: “Difficult
economic conditions forced many customers from the market and many
more have downgraded their existing cover”, although considering
the extent of the economic downturn “the demand for private health
insurance held up well.”
