Baggage reclaim is after immigration, so you need to go through passport control (entering Schengen) first, the collect your bags. No security check at this point. You then have to leave the airside area, go landside, take the train to the other terminal, check in, drop bags, and go through immigration (Schengen exit passport control) and security again.

The train has one airside car and one landside car, accessed from different platforms. You'll be in the landside car.

BTW you'll arrive in Terminal 1 on Lufthansa, and leave on Etihad from Terminal 2, not the other way round. This is why for the Etihad flight, it's immigration and then security - security is done at the gate in T2, like in Singapore.