Abstract: A system and computer-implemented method for managing risks and reducing costs for insurance companies is provided. The system comprises a customer portal to create a profile corresponding to each of one or more customers. The system further comprises a member management module to compute an individual score corresponding to each of the one or more customers, associate each of the one or more customers with one or more pre-defined groups, monitor activities of the one or more customers and update the computed individual score. Furthermore, the system comprises a group management module to update a pre-defined group score. The system also comprises an analytical engine configured to communicate with existing systems to facilitate computing insurance premium of each of the one or more customers based on at least one of: the corresponding updated individual score, the updated score of the one or more groups and the monitored activities.