Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 30

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 30
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We are the leading online
auto insurance platform in China, and help customers to apply for insurance quickly and easily. Insurance industry is a highly-regulated
industry in China, participating the sale, even resale of insurance requires certain permission or approval by PRC regulatory authorities.
As a platform provider, we need to obtain such permission or approval for sale of insurance, and we are holding valid license, but we
are not allowed to create or modify insurance products. Currently, we believe such limitation will not pose any influences or difficulties
for SunCar to keep providing platform services, however, if SunCar decides to start providing insurance directly, or any regulations change
to require us to hold other additional permissions or approvals to keep being a platform provider, SunCar may have to spare costs and
time to get the license and to be qualified, if which there can be no assurance.

Our business is subject to regulation and
administration by the China Banking and Insurance Regulatory Commission and other government authorities, and failure to comply with any
applicable regulations and rules by us could result in financial losses or harm to our business.

We are subject to the PRC
Insurance Law, Regulatory Provisions on Professional Insurance Agencies, and related rules and regulations. Our businesses in auto eInsurance
and other insurance areas are extensively regulated by the China Banking and Insurance Regulatory Commission (“ CBIRC”), which
has been given wide discretion in its administration of these laws, rules and regulations as well as the authority to impose regulatory
sanctions on us. Under the amendments to the PRC Insurance Law promulgated in 2009, the CBIRC has been granted greater regulatory oversight
over the PRC insurance industry, in part to afford policyholders more protection.

The terms and premium rates
of the insurance products we carry, the commission rates we earn, as well as the way we operate our auto eInsurance businesses, are subject
to regulations. Changes in these regulations may affect our profitability on the products we sell. For example, the CBIRC promulgated
a series of regulations and implementation directives to strengthen the regulation of the premium and commission rates for commercial
motor vehicle insurance since February 2015. In July 2017, the CBIRC’s Notice to Overhaul Chaotic Auto Insurance Market was promulgated,
aiming to strengthen regulation of the auto eInsurance market. Such regulation prohibits, among other things, insurance intermediaries
from giving inappropriate rebates to the insured when promoting insurance products, and imposes various restrictions on insurance companies
in relation to