Mr Turnwald has previously worked with former Southern Cross chief executive Peter Smith, who has been appointed to a special board subcommittee to oversee the day-to-day management until a new chief executive is appointed.
Roger Bowie resigned suddenly from the position this week. Last week he took took responsibility for major delays in claims payouts that were initially blamed on computer glitches.
He admitted the company had failed to hire and train enough staff to handle the switch.
Southern Cross has also brought back public relations consultants Weber Shandwick to replace consultants Praxis after a two-year absence and to help with damage control.
The crisis facing Southern Cross could extend well past the next few weeks as the company struggles to regain credibility in the health insurance market.
A senior marketing lecturer at the University of Auckland, Mark Colgate, said the problems besetting the organisation had been a public relations nightmare, with serious damage to its market brand image.
Dr Colgate said the way the company had handled the publicity was a disaster.
"They have done it very, very badly."
He said it was always best to be honest and upfront and not make promises that could not be kept.
Problems with delays in insurance claims were exacerbated if clients were given unrealistic indications that continually changed.
Dr Colgate said many Southern Cross members would feel tied into the company and not move.
The problem would be in attracting new customers, he said.
Meanwhile, board members and managers are putting in long hours to get the ailing health insurer back on track.
Chairman Hylton LeGrice said that yesterday was his seventh day of working 18 hours a day.
He insisted there was nothing more he could do about the situation at this stage.
He said he was not trying to evade questions, but the board should be left to get on with its business.
"We have explained it fully ... fair's fair."
Dr LeGrice said a statement would be issued as soon as possible.
When the board announced Mr Bowie's departure it referred to differences in the way the two parties saw the future direction of Southern Cross.
Dr LeGrice has refused to elaborate on where the views of the board and Mr Bowie differed.
Mr Bowie was thought to have been keen to follow international trends and expand Southern Cross into managed care through the Aetna acquisition, despite an unfavourable political climate.
Dr LeGrice was reported on National Radio yesterday as wanting to see Southern Cross get back to its core business.
Mr Bowie refused to talk to the Herald yesterday.
The chairman of the subcommittee set up to resolve the operational issues, Bryan Kensington, said it was taking 28 working days to clear claims.
He could not estimate their value until next week, but said claims usually averaged $30 million a month.
Mr Kensington said there had been an unusually high number of claims over summer as the publicity had made people file them more promptly.
"Normally the volumes drop off over the holiday period, and management had hoped to catch up."
The subcommittee would meet senior management today to compare priorities for resolving matters.
Other actions to be taken to restore confidence in the health insurer included more regular reporting to members and stakeholders, an independent financial review, and an updated status report on operational issues.
An international corporate recruitment agency did not think the negative publicity would hinder Southern Cross in finding a top candidate for the chief executive position.
Richard Manthel, general manager of Robert Walters, said the employment brand was not damaged.
"There has been egg on their face but it won't be that difficult to attract applicants."
nzherald.co.nz/southerncross
