Escalating medical insurance premiums over the past few years have raised concerns among policyholders if medical insurance can remain affordable in years to come. To address this concern and following a request from Bank Negara Malaysia (BNM) to investigate the drivers of rising medical insurance premiums, a Task Force was set up, represented by the Life Insurance Association of Malaysia (LIAM), Persatuan Insurans Am Malaysia (PIAM) and Malaysian Takaful Association (MTA). We had been commissioned by the Task Force to undertake a study to identify and to quantify the main drivers of rising medical premium costs. We used data provided by insurance and takaful companies, both life and general, on their Hospitalisation and Surgical Insurance (HSI) products for the analysis. Additionally, information from surveys and interviews conducted with the other stakeholders, namely Third Party Administrators (TPAs) and private hospitals, were used to gain insights into rising medical costs and identify areas which could contribute to the rapid escalation in medical premiums.