Glo Health will be launched as Ireland's fourth health-insurance provider in Dublin with the insurance company Irish Life holding a 30% stake in the new company.

Being set up by Jim Dowdall, Stephen Loughman and Oliver Tattan, the chief executive of Aviva, the new firm will focus on providing products for families as well as free cover to children under three years of age.

Under the leadership of three former executives with Aviva, the new company will offer five products, whose details will soon be unveiled to enable potential customers to tailor-make their policies.

An industry source told the Irish Times that the new company will provide health insurance in a completely different way to enable more flexibility in terms of coverage.

"The three individuals behind the new company will also be coming to the market having learned a lot with Vivas and they will be able to use that experience to challenge for market share very quickly," the source added.