(Reuters] -British insurance Direct Line reported a small increase in quarterly gross rates on Tuesday. The growth in its roadside and commercial services was aided by the expansion of its travel and motor units. However, tighter regulations and lower vehicle sales weighed heavily on their motor and travel units.

The rapid vaccination drive and early lifting of British lockdowns has led to an increase in traffic on the roads. However, motor insurance premiums are down due to the government’s caps on policies and a slowing of global production.

Direct Line, whose brands of insurance include Churchill Green Flag Shotgun, Privilege, Darwin, Shotgun and Shotgun, reiterated its medium term targets, but cautioned that prices in the first months of 2022 will be volatile after the economic reset.

The shares fell by 1.3% in the early trades to 284.4 pence.

Penny James, chief executive officer, stated: “We’re also on track for implementing the FCA [Financial Conduct Authority]’s new pricing practices regulations starting next year.”

Britain’s financial regulator this year set out plans https://www.reuters.com/business/finance/uk-financial-watchdog-protect-home-motor-insurance-customers-loyalty-penalty-2021-05-28 to protect consumers from so-called loyalty penalties in motor and home insurance, with new policies around automatic renewals, pricing and data reporting to be implemented from 2022.

London-listed insurance company that also provides home and business insurance said its overall gross written premiums increased by 0.7% to 875million pounds ($1.18billion) during the three months to September. This is compared with a previous year.

($1 = 0.7414 pounds)