Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 33

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 33
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 hoc examinations and investigations
by various PRC regulatory authorities in respect of our compliance with PRC laws and regulations, which may impose fines and/or other
penalties on us. There is no assurance that we will be able to meet all applicable regulatory requirements and guidelines, or comply with
all applicable regulations at all times, or that we will not be subject to fines or other penalties in the future as a result of regulatory
inspections.

Consumers may increasingly decide to purchase
insurance directly from insurance companies, which would have a material adverse impact on our financial condition, results of operations
and prospects.

The advancement of financial
technologies, or FinTech, and the emergence of Internet insurance products allow insurance companies to directly access to a broader customer
base at a low cost, and consumers may increasingly decide to purchase insurance directly from insurance companies. A rising number of
traditional insurance companies have established their own online platforms to sell Internet insurance products directly to consumers.
More recently, the advent of a few online-only Internet insurance companies, such as ZhongAn Online P& C Insurance Co., Ltd., is regarded
as an emerging force to further disintermediate China’s insurance industry. The process of eliminating agencies as intermediaries,
known as “disintermediation,” could place us at a competitive disadvantage and reduce the need for our products and services.
Disintermediation could also result in significant decrease in business volume and loss of commission income from our auto eInsurance
business, which could have a material adverse effect on our business, financial condition, results of operations and prospects.

Because the commission revenue we earn on
the sale of insurance products is based on premium and commission rates set by insurance companies, any decrease in these premiums or
commission rates, or increase in the referral fees we pay to our external referral sources, may have an adverse effect on our results
of operation.

We derive a majority of our
revenue from our auto eInsurance business by earning commissions from insurance companies we cooperate with. The commissions we receive
from insurance companies on the insurance policies sold are generally calculated as a percentage of the insurance premiums paid by the
insured. Our revenue and results of operations are thus directly affected by the size of insurance premiums and the commission rates for
such policies.

Insurance premiums and commission
rates can change based on the prevailing economic, regulatory, taxation-related and competitive factors that affect insurance companies
and end consumers. These factors, many of which are not within our control, include insurance companies’ expectation on profits,
consumer demand