US insurance company FM is expanding its presence in Europe and launched the construction of its new science and technology centre in Luxembourg on 17 March 2025. The new centre will complement its existing research and education facilities in the United States and Singapore.
“FM is a speciality insurance company, insuring commercial and industrial property and the business interruption risks of complex operations such as manufacturing, advanced logistics, chemical operations and data centres,” explains FM Chief Science Officer Louis A. Gritzo. “Through research and engineering, we provide unique insights to our clients on what risks they are facing and how they can be reduced. We then insure the risks we can’t eliminate.”
European expansion: Enhancing client proximity and regional expertise
FM’s European expansion aims to bring its expertise and science-driven solutions for emerging risks closer to clients and stakeholders across Europe, the Middle East, and Africa (EMEA). As climate hazards become a growing concern for businesses worldwide, FM is also expanding its research capabilities to assess risks specific to different regions. The company already has climate science teams in the United States and Singapore and now aims to build a similar hub in Europe, benefitting from the continent’s tremendous talent pool in the field.
Initially, I assumed that Luxembourg was just a formality on our shortlist – we expected to choose a larger country like France, Germany or the Netherlands.
In addition, FM’s European hub will conduct cutting-edge science on risks related to advanced industrial technologies such as automation and robotisation, and how they can be mitigated. The increased use of automation also heightens companies’ exposure to cyber risks – another focus area of the European facility. A cyberattack could cause critical equipment to fail, causing property damage and/or bringing entire production lines to a standstill.
Luxembourg: a dynamic and supportive ecosystem
The search for the right location for a European research and innovation centre began in 2017. FM explored several countries, looking in particular for a strong ecosystem of partners that would help it get its operations up and running quickly. As its European headquarters was already in Luxembourg, the company decided to take a quick look at the Grand Duchy as well. “Initially, I assumed that Luxembourg was just a formality on our shortlist – we expected to choose a larger country like France, Germany or the Netherlands,” Mr Gritzo recalls.
Their energy and interest in cooperation confirmed that we could count on strong support.
However, a visit to Luxembourg hosted by the national innovation agency, Luxinnovation, changed the approach. “We had never heard about the Luxembourg Institute of Science and Technology (LIST) before and didn’t realise that there was such a great research institute here. We were also amazed to discover that during our first visit, we were able to talk to the key senior government officials and research decision makers who are building the country’s technical ecosystem. Their energy and interest in cooperation confirmed that we could count on strong support.”
The objectives of FM’s research facility aligned well with Luxembourg’s strategic research priorities. The very welcoming culture and the general fluency in French, German and English also contributed to the company’s decision to choose Luxembourg.
A centre for talent
The 25,500 m2 science and technology centre, expected to be completed in 2027, will house laboratories big enough to conduct real-scale experiments. “Nothing drives risk reduction more effectively than seeing that risk in person and discovering how it can be prevented,” Mr Gritzo confirms.
Meanwhile, research and experiments have already started on temporary premises, and a team of four scientists has been recruited. “One of our main concerns about Luxembourg was whether we could recruit the right talent locally. We spoke to local institutions – LIST needs to hire the same kind of talent as we do – and clients that do R&D. We also contracted with a talent search company to conduct a comparative study. We realised it was quite possible both to find people here and to attract talent to Luxembourg from the rest of Europe and beyond. A lot of the people we spoke to had themselves relocated from other countries.”
Mr Gritzo considers diversity of nationalities in Luxembourg – three-fourths of the workforce is made up of foreign nationals – as a key advantage. “People with different backgrounds see things differently, and that helps when working in a technical environment. The cost of living is high, but the quality of life is outstanding. The good education system helps attract talents with young families.”
Building long-term partnerships
FM continues working with LIST and the applied science institute Fraunhofer in Germany. The company is exploring future partnership opportunities with the University of Luxembourg’s Interdisciplinary Centre for Security, Reliability and Trust (SnT), the Luxembourg House of Cybersecurity and MeluXina, the national supercomputer.
Now that we have a research presence in Europe, we need to tie in with the ecosystem in the best way possible.
Mr Gritzo underlines the importance of having a local contact person to ease the way. “David Foy at Luxinnovation has been our go-to person for anything we need here. He has helped us understand who does what, identify partnership opportunities and get introductions to key government stakeholders. FM is quite different from other insurance companies, and it is very important that this is clear to the people with whom we interact. David was instrumental in achieving that.”
The presence in Luxembourg is now opening additional opportunities to develop broader European partnerships through EU-supported research and innovation projects. “We are not looking for funding, but we are interested in contributing to and leveraging the scientific work going on here,” Mr Gritzo points out. “Given that Luxembourg plays an important role in the EU, there are huge opportunities that Luxinnovation can help us access. Now that we have a research presence in Europe, we need to tie in with the ecosystem in the best way possible.”
The investment in the Luxembourg science and technology centre is a central element of FM’s strategy and strategic for the future. “We are committed here for a long time.”
Photo credits: FM