Yuanbao is a China-based online insurance distributor focused on health insurance products, primarily short-term medical insurance and critical illness insurance. Yuanbao does not underwrite insurance — it connects consumers with policies issued by partner carriers, earning commissions and fees in the process. Yuanbao sells exclusively online, acquiring consumers through paid digital advertising on major Chinese internet and social media platforms. The company serves approximately 18.2 million insurance consumers and facilitated roughly 30.7 million new policies in FY25. Revenue comes from two streams: insurance distribution services (commissions amortized over the policy term, ~33% of revenue) and system services (one-time technology and marketing fees charged to carrier partners, ~67% of revenue). Yuanbao's core economic engine relies on spending heavily on digital advertising to acquire consumers, then earning both a commission and a technology fee on each policy sold, with a take rate of roughly 10% of premiums. Yuanbao's proprietary AI model network — over 4,900 models analyzing more than 5,700 consumer data labels — is designed to improve ad targeting efficiency and drive a positive ROI per consumer acquired. Yuanbao bears no underwriting risk, making its economics resemble a software and marketing business rather than a traditional insurer. Growth levers include scaling consumer acquisition, cross-selling additional products to existing consumers, and expanding into underserved demographic segments. Yuanbao also acquired a Hong Kong brokerage license in 2025 to address the cross-border insurance market.