“From Quantum Lasers to Insurance CTO: The Unusual Tech Journey of Markus Löffler”
An interview by Dany Marches Admin of ondaytrade, published on ondaytrade.com
He dreamed of becoming a professional trumpet player — but instead, Markus Löffler became a sysadmin, physicist, McKinsey director, and ultimately the first CTO of Allianz Insurance. So how does someone without a traditional tech career end up with one of the top IT jobs in the world?
In our interview series, we speak with tech executives about their work, hiring criteria, and future trends. At the end, there’s a rapid-fire round of questions. Let us know in the comments which leaders and questions you’d like us to feature next. All CTO interviews in the series can be found [here].
Some resumes make you wonder how one person can accomplish so much in a single lifetime. Markus Löffler, 51, lives with his family in Stuttgart and commutes weekly to Munich, home to Allianz Insurance’s headquarters. For the past three years, he has served as the company’s first Chief Technology Officer (CTO), spearheading the digital transformation of one of the world’s largest insurers with over 100 million customers and €172 billion in annual revenue.
Before that, Löffler spent two decades at consulting powerhouse McKinsey, eventually becoming a Senior Partner and Director in the Business Technology Office. There, he tackled IT modernization, smart car insurance, and the digital overhaul of major insurance players — including Allianz, one of his key clients and future employer. His tech instincts and non-linear career path gave him a fresh, outside-the-box mindset, he says.
As a teenager, Löffler dreamed of being a professional trumpet player until he discovered coding. He wrote his first programs, later worked as a system administrator, studied physics, and earned his PhD at the Max Planck Institute for Quantum Optics, where he researched quantum computing, cryptography, and single-atom lasers. His role as CTO now combines his passions: coding, R&D, and consulting. “And there’s a huge focus on implementation — which I enjoy the most,” he says.
“Mr. Löffler, do you even get weekends off?”
Löffler: If you want to make real impact, you have to put in the effort — whether in research, consulting, or tech leadership. But family time, music, and sports are important to me, so I keep weekends mostly work-free and extend my workdays during the week.
Do you ever wish you’d had more free time in life?
Löffler: Not really — I’ve always maintained a good balance and worked autonomously. I also think rigidly separating work and life is outdated. I always have more ideas than time to execute them, both professionally and personally. Sometimes I just wish there were a few more hours in a day.
Did your interest in computers start early?
Löffler: I was always into science and technology, and dabbled with programming on my old 286 PC in school. My real passion for computing took off when I started applying it to complex numerical problems in physics.
What kinds of programs did you write back then?
Löffler: I created software to analyze fractal structures in math, nature, and music — including one for analyzing a Bach invention.
Was there a defining moment when you chose physics over music?
Löffler: When I saw the level of competition at “Jugend Musiziert” (a youth music competition), I realized a top-tier career in music wasn’t realistic for me — but physics allowed me to work at the highest level on fascinating problems.
What fascinated you most about working at the Max Planck Institute?
Löffler: I was amazed at how deeply we could probe nature’s secrets using powerful computers, advanced physics, and cutting-edge lab equipment. A colleague built a laser system using a single ion. I predicted how it would behave — including spectrum simulations factoring in quantum states and motion. We were operating at extremes: 1–2 Kelvin, ultra-high vacuum, superconducting mirrors — all to build the future of quantum computing.
What were some programs you developed for your research?
Löffler: For the single-ion laser, I simulated its light spectrum, modeling everything quantum-mechanically — from light fields to atomic motion. I also created a program to simulate a new type of mirror that reversed light phase by 180°, which could help satellites correct atmospheric interference.
Any funny or memorable moments from your time as a sysadmin?
Löffler: One time, I boosted a PowerPC cluster’s performance by 30% overnight by swapping AIX for Linux — without asking. On another occasion, I accidentally crashed a supercomputer by overwriting part of the OS while optimizing binary machine code. These days, I’m happy to leave sysadmin work to the pros at Allianz.
How did your pivot from physicist to IT expert happen?
Löffler: My work in quantum optics relied heavily on numerical methods and high-performance computing. I managed clusters and got involved with open-source software early on — both as a user and developer.
And then you joined McKinsey?
Löffler: Yes, after my PhD I moved to McKinsey. I can’t name most clients, but Allianz was my key client for many years. I consulted globally across high-tech, manufacturing, logistics — always keeping my work diverse and international.
What led to your appointment as Allianz CTO?
Löffler: The CTO role was newly created. Part of the challenge was to define and shape it from scratch — which was exactly the kind of opportunity I was looking for.
What does your role as CTO involve?
Löffler: I drive execution of Allianz’s strategy, especially the Allianz Customer Model (ACM), which simplifies and digitizes the business. We’re revamping everything — products, pricing, sales, claims, and back-office processes — to create a seamless, global, digital experience. I’m involved in strategy, architecture, delivery, economics, and cybersecurity.
What’s a typical day like?
Löffler: I work on strategy development and communication, unblock critical projects, troubleshoot systems, make IT security decisions, and manage budgets. It’s diverse and demanding — exactly how I like it.
What are your biggest achievements as CTO so far?
Löffler: Within my first month, we launched a hybrid-cloud strategy focused on public cloud, partnering with two major providers. Previously, we ran everything in a private cloud. We’ve also developed our IT Master Platform, a global system tailored to our business strategy, now rolling out worldwide.
How do you balance agility with insurance’s inherent bureaucracy?
Löffler: Our “Simplicity Wins” strategy is all about eliminating bureaucracy. But we still need precision in areas like data protection and risk management — we can’t afford “banana products” that ripen at the customer. Still, our IT is on par with top tech companies.
If you had a magic wand to solve one tech issue?
Löffler: I’d instantly convert vertically-scaled databases into horizontally-scalable architectures. That would massively accelerate our cloud transformation and convergence of transactional and analytics systems.
Do you build software in-house or rely on partners?
Löffler: We prefer SaaS and market solutions, integrating them into our Allianz platforms. The exception is our core insurance system, Allianz Business System (ABS), which we build ourselves — and even license it out via our subsidiary Syncier, in partnership with Microsoft.
What languages do you use most? Do you still code?
Löffler: Most of our code is in Java and Angular. I don’t code at work anymore — probably for the best — but I still tinker with hobby projects at home, like automating my garden irrigation.
How has digitalization changed insurance?
Löffler: Customers no longer compare insurers to each other — they compare us to digital leaders in every industry. A smooth experience buying furniture online sets the expectation for everything, including insurance.
Is “Healthy Living” data already used to adjust premiums?
Löffler: Technologically, yes. But using personal lifestyle data is a business decision — one we approach carefully. It’s about deciding whether to reward healthy behaviors or maintain risk-sharing across all customers. Regulations vary by market.
Could a sedentary lifestyle impact future coverage?
Löffler: I wouldn’t worry. Statistically, hard-working people are healthier and live longer! But more personalization is coming — some customers will want tailored products, others prefer to remain part of a broad risk pool.
Why is booking a specialist in Berlin still so hard? Can insurance fix this?
Löffler: Regulatory limitations mean we can’t interfere in doctor-patient relationships. But for something like car repairs, we can offer full-service support.
What’s exciting in Predictive Analytics?
Löffler: Industry 4.0 is booming — we’re scaling globally. Predictive Analytics helps us anticipate maintenance needs in insured industrial systems or data centers, improving reliability and efficiency.
What are the top data challenges for future insurers?
Löffler: Proprietary data is still key, but now it’s about combining it with third-party and public data for greater insights. That’s a major shift — insurers must now create value by augmenting and smartly using data, not just owning it.
GDPR: obstacle or opportunity?
Löffler: Definitely an opportunity. High standards build trust. Our internal policies often exceed legal requirements. It’s good that all players — including tech giants — must comply.
What are you looking for in IT talent?
Löffler: IT is core to our strategy. We offer exciting global projects, innovative algorithm work, and real-world impact. We’re also open to non-traditional backgrounds — track record and mindset matter more than degrees.
Do your hiring processes involve live coding?
Löffler: Yes, for developer roles. The process varies by role, but we assess both technical skills and business judgment. I always try to understand someone’s personality and holistic journey.
What’s a dealbreaker in hiring?
Löffler: Lack of integrity or insufficient academic/professional depth.
Rapid-Fire Round
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Best technical book?
Gödel, Escher, Bach -
Favorite Star Wars character?
(Not answered) -
Favorite programming language?
(Not answered — but he mentioned Java & Angular earlier) -
Best IT blog?
Connect with Oliver (Our CEO’s internal blog — unfortunately not public) -
Best IT podcast?
IQ Science and Research (ARD) -
Best IT event?
Web Summit -
What to learn in 2021?
Innovation & growth — post-crisis recovery depends on it -
Available after hours?
No real “off hours,” but if you call on a weekend, it better be important -
Password manager?
USB stick in a bank vault -
VPN?
Allianz Global Network
