Which factor does NOT affect the premium of insurance?

The Consumer Price Index (CPI) does not directly affect the premium of individual insurance policies. Premiums are typically influenced by factors such as the personal information of the applicant, the type of benefits requested, and the specific type of policy being issued.

The applicant's personal information is critical as it provides insights into risk factors; for example, age, health status, and lifestyle can significantly affect the likelihood of a claim being made. The type of benefits requested determines the level and range of coverage, which in turn influences the cost of that coverage. Similarly, the type of policy, whether it’s term insurance, whole life, or another form, carries its own set of risk assessments and pricing structures.

While the Consumer Price Index may influence the broader economic environment and overall market trends, it does not specifically dictate the calculation of an individual’s insurance premium. Hence, it is the factor that does not directly affect the premium on a case-by-case basis.