Internal Audit

The Company has set out the fundamental principles for establishing the Group’s internal audit framework in the Internal Audit Policy for the Daiichi Life Group. The basic matters for the efficient and effective implementation of internal audits are defined in the Internal Audit Regulations for the Daiichi Life Group. Additionally, the Internal Audit Regulations stipulate the basic matters to ensure that all officers and employees of the Company recognize the importance of internal audits and carry out all related activities efficiently and effectively.

In principle, the Company and Group companies each maintain their own internal audit functions. To oversee internal audits across the Group, an independent organization, the Internal Audit Unit has been established, which also serves as a check-and-balance mechanism for the audited entities. The unit monitors, advises, and supports the development and operation of internal audit frameworks within Group companies. The unit also conducts internal audits on Group companies as necessary. The results of its evaluations regarding the effectiveness of internal control systems are reported to the Board of Directors, the President, and the Audit & Supervisory Committee.

The Company has established the Audit & Supervisory Committee, in which the majority of members are external directors. The Internal Audit Unit conducts internal audits based on audit policies, plans, and perspectives of the committee, and liaises closely with the committee by reporting its internal audit plans and results on a regular and as-needed basis.