The Illusion of Independence: How ITEL Sided with Insurance Carriers Over Policyholders.

Originally published by Andrew G. McCabe on LinkedIn. Read the original on LinkedIn →

ITEL was never the established standard.

From its inception, ITEL was not created as a neutral, independent entity. It was designed and implemented by insurance carriers with one clear objective: to reduce claim severity and minimize payouts. ITEL’s existence has always been a tool for insurance companies to limit their exposure, not a resource for fair and balanced claim resolution.

For decades, ITEL marketed itself as an impartial third-party laboratory for material testing and identification, presenting an image of independence that policyholders and contractors were led to trust. However, allegations from industry insiders, such as Matt Gregory, CEO of Apex Era, have shed light on a starkly different reality. According to Gregory, ITEL’s parent company, Global Claim Services (GCS), dictates ITEL’s operations to serve the financial interests of insurance carriers. Gregory accuses key figures such as Brian Matthews, Bob Logan, and Chris Touin of orchestrating what he calls a “white-collar racketeering crime” to maximize profits for GCS and its affiliates at the expense of policyholders and contractors.

One of the most troubling aspects of ITEL’s practices is the manipulation of its material matching process. Reports that once used clear indicators like a green check for a suitable match or a red ‘X’ for no match have been altered to provide a match for virtually everything. This change effectively justifies insurance carriers’ decisions to repair rather than replace, even when a true match is unavailable. ITEL’s connection to Discontinued Materials, Inc. (DMI) further deepens the conflict of interest. DMI profits directly from ITEL’s material matches by selling outdated or discontinued materials deemed suitable for repairs, creating a closed loop of profiteering.

As a restoration professional who has been in the trenches for over two decades, I have witnessed firsthand the ways in which tools like ITEL have been leveraged against contractors and policyholders alike. What ITEL claims to offer—impartial material matching and testing—has, in reality, been a mechanism to justify underpaying claims and sidestepping full replacements when they are warranted. The veneer of independence has always been thin, and for those of us who deal with these reports daily, it’s clear that the system was rigged from the start.

Over the years, insurance companies have developed a range of tools and practices designed to shift the financial burden away from themselves and onto the backs of contractors and policyholders. ITEL is just one cog in this larger machine.

Let’s not mince words here: the impact of these practices is significant. For contractors, it means thinner margins, more disputes, and the impossible task of delivering quality work while navigating an intentionally flawed system. For policyholders, it means less-than-adequate repairs, delays in restoring their homes or businesses, and the gut-wrenching realization that the coverage they’ve been paying for doesn’t actually deliver when they need it most.

ITEL reports used to clearly indicate when a material match couldn’t be found, often necessitating full replacement. But as the system evolved to serve the carriers’ bottom line, those clear indicators disappeared. Now, every report seems to magically find a match—whether or not that match is feasible or fair. And when those matches point toward discontinued materials, ITEL’s relationship with companies like Discontinued Materials, Inc. (DMI) reveals a deeper conflict of interest. The very same entities that claim to assess the situation impartially are profiting from the results of those assessments.

This isn’t just about ITEL. It’s about the broader ecosystem of control that insurance carriers have built over the years. From managed repair programs to preferred vendor lists, these systems are not about providing better service or fair resolutions—they’re about control and cost containment. The result is an industry where trust has eroded, and those of us who genuinely care about doing right by policyholders are left fighting an uphill battle.

In the coming articles, I’ll delve into other facets of this systemic problem. We’ll explore how pricing structures like Xactimate have been manipulated, the rise of carrier-driven networks that restrict contractor independence, and the long-term effects these practices have on the restoration industry and homeowners alike.

This fight isn’t just about money. It’s about integrity, transparency, and fairness. As restoration professionals, we have a responsibility to stand up against these practices. And as policyholders, you deserve to know the truth about the systems that claim to protect you but often work against your best interests.

ITEL was never the standard—it was the insurance industry’s strategy. And recognizing that is the first step toward reclaiming fairness in our industry.

Andrew G. McCabe

~Rebel Leader

This article is the first in a broader series that will expose how insurance carriers have systematically chipped away at contractor profits and, more importantly, the rightful claims of their own insureds.

Bibliography

• Gregory, Matt. Allegations of Fraud and Misrepresentation Against ITEL Laboratories. Apex Era Briefing Document, October 2023. Link
• Global Claim Services. Corporate Overview and Operational Goals. Link
• Discontinued Materials, Inc. (DMI). Material Sales Practices and Connections to ITEL. Link
• Historical ITEL Reports. Link
• National Association of Restoration Professionals. Impact of Biased Claims Processes on Contractors. Link
• Apex Era. Exposing the ITEL-GCS-DMI Network: A White-Collar Racketeering Allegation. Link
• Policyholder Advocacy Groups. The Erosion of Trust in Insurance Claims Settlements. Link
• Xactimate Pricing Adjustments: An Insider’s Guide. Link
• Restoration Contractors’ Network. The Fight Against Managed Repair Programs and Vendor Restrictions. Link
• Industry Whistleblower Reports. Link