VHI queries motives of AIB-backed health insurance firm

The VHI has questioned the motives of a new health insurance firm that entered the Irish market today.

Vivas Health, which is backed by financier Dermot Desmond and AIB, has promised to offer customers cheaper and better tailored policies than existing health insurance firms.

However, VHI chief executive Vincent Sheridan said consumers should be sceptical about the new company, particularly because of the involvement of AIB.

"Competition is great, but that's not something that you see much in other countries around the world," he said.

"Banks have not got involved in healthcare because the pursuit of profit doesn't go well with looking after the healthcare needs of your members."