Natural Disasters

Topics: Decision making, JetBlue Airways, Critical thinking Pages: 2 (511 words) Published: October 19, 2012
Problem Definition

Jeff Rommel was very unfortunate, because he had to confront one of the worst two months of hurricane season in Florida; it was about 40 billions of dollars in damages. The claims were huge. He had to cancel many policies, which caused negative media reactions that affected them a lot. Also, he didn’t give a positive impact to the media. He stated: “"Pulling out was a sound business decision. Was it good for the individual customer? No, I can't say it was. But the rationale was sound."

Rommel's quote about making a ''sound business decision'' reveals overconfidence decision-making biases. His decision also discloses an anchoring bias as it looks like that Nationwide did not take into consideration some information that others did.

Insurance was not the only affected industry with natural disasters; also Airlines were very affected with this whole hurricane and weather situations.

Jet Blue was one of these affected airlines due to the weather. They held the passengers on its planes for about 10 hours with closed bathrooms. They refunded to the passengers their money but in a very rude way. Unfortunately JetBlue’s Founder & CEO, David Neeleman couldn’t handle the situation, and responded to the media in an improper way.

Justification for Problem Definition
The most relevant error and bias for companies like Nationwide Insurance, American Airlines, and JetBlue company is the overconfidence bias, they thought they are always making the right decisions and they believed too much in their own ability to make good decisions, just as Rommel's quote about making a “Sound business decision.''


1. Rommel, Burgin, and Neeleman should have thought of the welfare of policy owners and passengers before taking their decisions. In these situations we have to look for cause and effect relationships.

2. They should have listened to different options instead of taking the first option they had. In the three...
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