Insurance company Direct Line reported lower gross premiums for the first quarter as new rules on pricing practices impacted results.
The company on Wednesday said overall premiums fell 2.4% to £734m, as revenues decreased across its motor, home, and rescue businesses.
Britain’s financial regulator, the Financial Conduct Authority, introduced new rules blocking firms from “price walking” in the home and motor insurance markets – effectively banning insurance companies from raising the premiums of loyal customers.
Revenues from Direct Line’s motor division fell 5.4% and 9.9% at its home insurance segment.
Motor claims severity inflation remained high due to higher car prices, which hit total loss and theft claims, and supply chain constraints which hit repair times.
The company also said costs from storms Dudley, Eunice, and Franklin were at the higher end of its estimates, costing around £40m.
