Abstract: A system and method are disclosed to reduce insurance premiums for clients participating in a plan administered by an operating business entity. The method includes facilitating the establishment of a collateral account in the name of a client as part of the administered plan. The method further includes facilitating the purchasing of an insurance policy of a first type, having a premium payment and a deductible, in the name of the client, wherein the insurance policy of the first type is provided by an insurer approved by the operating business entity. The method also includes facilitating the pledging of the collateral account to payment of the deductible in the event of a successful claim against the client which is covered by the insurance policy of the first type. A computer-based system, having at least one processor and at least one memory module, may be used by an operator to help perform the various method steps.