Insurance companies have agreed to fund a new garda unit dedicated to investigating insurance fraud, at a cost of €1m a year.
It is hoped the unit, which will be operationally independent of the insurance industry, will ultimately bring down the cost of premiums for motorists.
It is estimated that one in 10 claims is exaggerated or fraudulent.
CEO of Insurance Ireland Kevin Thompson says it is now up to the Government to get it up and running.
Mr Thompson said: "Its for Government to decide now. It was part of the recommendations from the Government's Cost of Insurance working group.
"We have responded to that recommendation through our analysis, we have confirmed to the Government that the funding is there, and it's now for Government to decide when and how this will happen."