The relationship between the actors of the supplementary healthcare system in Brazil is characterized by complex conflicts of interests and power struggles, which can be analyzed by the agency theory. This theory - combining elements of economic sciences, mainly consumer and market theories, with ideas derived from organizational and behavioral studies - divides the economic agents in principals and agents. The analysis of the supplementary healthcare market reveals its many actors play simultaneously the roles of agent and principal. This duality of roles is the root of most conflicts, originating several regulation mechanisms which try to reduce agency costs derived from conflicts of interests that are the main cause of this sector's agency issues.
agency theory; supplementary healthcare sector
