Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 127

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 127
---
 consumer demand for the insurance products, the availability and pricing
of comparable products from other insurance companies and government regulation and policies, in particular price-setting regulations
by the China Banking and Insurance Regulatory Commission (CBIRC). Consequently, our average commission rates also varied between different
locations and times of operation.

We offer to insurance buyers
auto eInsurance products underwritten by major insurance companies in China. The auto eInsurance products we intermediate consist primarily
of statutory automobile liability insurance (“ SALI”) and commercial auto eInsurance. SALI is the compulsory vehicle insurance
for all automobiles in China as required by relevant laws and regulations, and cover casualty and property loss in accidents involving
the insured vehicle. Additionally, we intermediate various types of non-mandatory commercial insurance products for automobile owners,
which cover damages caused to the insured automobiles by collisions and other traffic accidents, falling or flying objects, fire, explosion
and natural disasters. We also intermediate commercial third-party liability insurance products, which cover bodily injuries and property
damage to third parties caused by accidents involving insured vehicles, losses arising from vehicle theft and robbery and liability to
passengers. We also intermediate supplementary policies to cover additional losses such as broken glass and vehicle body scratches. From
time to time upon enquiry of insurance purchasers, we also facilitate individual accident insurance and other property and casualty insurance
products related to car use or car owners.

We have digitalized our auto
eInsurance business using our proprietary technology to ensure an efficient and friendly user experience. We employ artificial intelligence
(AI) technology to automate parts of the workflow, completing the entire insurance purchase process within a few minutes. We are digitally
connected to 35 major insurance company groups in over 800 insurance company branch offices (including the top 10 insurance company groups
with combined over 90% market share) in China through their systems, with a wide selection of auto insurance products. Our sales partners
have frequent exposures to and accurate traffic data of car owners. These sales partners introduce and guide the car owners to purchase
insurance and receive sales commissions from us.

By the end of 2024 we had
set up 31 branches in different cities. We had expanded our sales channels to over 64,000 sales partners. In China, Insurance companies
setup lots of local insurer branches in different provinces or cities to deliver their services and products. Usually both Insurance companies
and their insurer branches have decision power to select the agency partners but when we engage with insurance companies, the cooperation
is established by computer system connection and the business