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Risks
1. Strategic Challenges: Dai-Ichi Life Holdings and Dai-Ichi Life Insurance are operating in the highly competitive Japanese life insurance market. The companies face strong competition from domestic and international rivals, which can put pressure on margins and profitability.
2. Low Interest Rate Environment: Low interest rates can reduce profitability for life insurers since they are typically need to invest customer premiums in relatively low-yielding investment instruments. If interest rates remain low for an extended period, Dai-Ichi Life Holdings and Dai-Ichi Life Insurance could be impacted.
3. Regulatory Risks: As a major life insurer, Dai-Ichi Life Holdings and Dai-Ichi Life Insurance are subject to the direction and regulations of government regulators. Regulatory changes could increase operational costs or limit growth opportunities.
4. Cyber Security Risks: Dai-Ichi Life Holdings and Dai-Ichi Life Insurance maintain a significant amount of customer information which are vulnerable to be breach. As such, the companies must continue to invest in their cyber security and risk mitigation measures.