The Tánaiste, Ms Harney, is in talks with a number of insurance providers outside the State - including one in particular - who are interested in entering the Irish market to provide increased competition for consumers.
Ms Harney yesterday told the Oireachtas Joint Committee on Enterprise and Small Business that she was "reasonably satisfied" one company in particular was prepared to enter the market across all the insurance sectors.
The Tánaiste said she had had discussions with "a number of interested parties" who have expressed an interest in entering the Irish market. But they had "issues" relating to bogus claims and certain justice legislation needed to be enacted to enable their entry, she said.
Ms Harney said increased competition would drive down costs and offer more services.
Ms Harney also repeated her exhortation to consumers to "shop around" when it comes to buying insurance products. She said there was evidence that motor insurance premiums had fallen by about 11 per cent between December 2002 and December 2003, but she believed all premiums could be pushed down even further.
Ms Harney said there was a need to "remain focused" on the programme of insurance reform.
The Tánaiste also told the committee that the Personal Injuries Assessment Board (PIAB), which was recently established on an interim basis, will begin operating on a statutory footing from the start of next month.
Some 1,000 people applied for jobs with the body. Job offers for the most senior positions are now being made and the PIAB will have a staff of 85 when fully operational.
Ms Harney said the PIAB would be a "very transparent, claimant-friendly organisation" that would operate six days a week.
Senator Donie Cassidy (FF), the committee chairman, said the committee was determined to play its part in bringing down the "plague" of high insurance premiums, which were causing "major difficulty" for many businesses. Under questioning by the committee members, Ms Harney also indicated that the question of setting up a dedicated road traffic corps was "off the agenda" for the moment.
Mr Brendan Howlin (Lab) expressed concern about road safety initiatives and urged that speed cameras be used not as a means of collecting revenue, but as a genuine way of reducing the number of road deaths.