Natural Disaster and the Decisions That Follow Essay

In the hurricanes wake, Nationwide certain more than 119,000 claimscollectively worth $850 million. Although dealing with those claims was tricky, even more difficult was Rommels later decision to cancel approximately 40,000 homeowners policies. Nationwide genuine a huge amount of mediaattention as a result, almost all told negative. In reflecting on the decision, Rommel said, Pulling out was a soundbusiness decision. Was it good for the several(prenominal) customer? No, I cant say it was. But the rule wassound.Hurricanes arent the only weapons in natures arsenal, and the insurance attention is hardly the onlyindustry affected by nature. Consider the airline industry.American Airlines has 80,000 employees, 4 of whommake decisions to cancel flights. One of them is Danny Burgin. When stand systems approach, Burgin needs toconsider a host of factors in deciding which flights to cancel and how to reroute affected passengers. He arguesthat of two major weather factors, winter snow storms andsummer thunderstorms, snowstorms are easier to handle because they are more predictable. Dont tell tha t toJetBlue, however. On February 14, 2007, JetBlue wasunprepared for a snowstorm that hit the eastside Coast. Dueto the lack of planning, JetBlue held hundreds ofpassengers on its planes, at JFK, in some cases for aslong as 10 hours (with bathrooms closed). To the stranded travelers, JetBlues tepid offer of a pass was just as outrageous.