Ace Group has secured provisional approval to open a representative office in Myanmar later this year.

A representative office does not allow Ace to conduct business, but lets it build relationships with regulatory authorities and the business sector as the insurance market starts to open.

Twelve domestic private companies have been issued insurance licences. They will be given time to establish themselves before international groups are admitted in about 2015.

Previously only the government-owned Myanma Insurance traded in the politically and commercially isolated country.

In 2008 and 2009 several major companies – including Willis, Swiss Re, Aon and QBE – cut ties with the Myanmar market in response to pressure from human rights groups.