What are the two main categories of factors that affect the sales of insurance policies?

The correct answer identifies two main categories of factors that influence the sales of insurance policies: individual and external factors.

Individual factors pertain to the personal characteristics and circumstances of potential policyholders, such as their age, health status, income level, and personal preferences regarding risk and financial planning. These factors can significantly impact an individual's decision to purchase insurance, as they reflect the specific needs, concerns, and priorities of each potential customer.

External factors encompass broader influences outside the individual that can affect the insurance market as a whole. These may include economic conditions, regulatory environments, social trends, and competitive dynamics within the insurance industry. For instance, during a recession, potential buyers may be more hesitant to purchase insurance due to financial constraints, while a strong economy may encourage more people to secure financial protection through insurance policies.

Understanding both individual and external factors is essential for insurance professionals as it helps them tailor their sales strategies and improve customer engagement based on varying influences that affect consumer behavior in the insurance market.