The challenges in using historical data in insurance span multiple reasons. Insurers often struggle with inconsistent or incomplete data from disparate sources. This fragmentation hinders their ability to create accurate customer segments, as legacy systems may not seamlessly integrate with new data platforms​. Insurers must navigate complex compliance issues while ensuring that data is ethically collected, stored, and used for customer profiling​. Many insurers lack the advanced tools or infrastructure needed to process and analyze large datasets efficiently.