Clarica receives national recognition for innovative e-Business achievements

Web-enabled sales force

Waterloo, Ontario — May 23, 2001 — Clarica has
been recognized for its outstanding achievement in adapting to meet the challenges of the new economy.

Clarica was recognized by Next 21, a national
program developed to recognize e-Business innovation and success achieved by leading
Canadian companies in the new economy. Next 21, co-sponsored by the National Post
and Andersen, evaluates how Canadian companies use the Web to transform their traditional
business models to increase revenues, decrease costs, serve existing customers and acquire
new ones, increase productivity and improve integration with suppliers.

“We view this recognition as a real honour for Clarica
and for the team of people who made this achievement possible,” said Barry Triller,
Clarica’s Executive Vice-President, Canadian Customers.

Diana Deverall-Ross, Clarica’s Vice-President,
e-Business, said “our objective is to build an integrated platform to help our
dedicated sales force use the power of the Internet to enhance customer relations, build
their business and increase productivity. Our e-Business strategy benefits agents by
allowing them to focus on building relationships and providing financial advice. By
enhancing their value with the convenience and access of the Internet, we strengthen our
value proposition for our customers.”

Clarica’s 3,100 sales agents, managers and specialists
who direct their clients to Clarica’s Web site share referral commissions for online
sales. Agents are informed of completed applications and the purchases their customers make online.

Personal health insurance was the first product offered
online in mid-summer 2000 followed by the ability to purchase index funds in time for the
2001 RRSP season. This April, a Guaranteed Benefit Replacement plan was added to provide
the option of insuring there are no gaps in health and dental coverage as an employee
moves through events that result in loss of group benefits.

Clarica has also rebuilt and refreshed its site, making it
simpler to navigate, and adding features that include individual Web pages for each agent,
providing all of the content on Clarica.com, as well as links to community Web sites and
other online investment options such as TD Waterhouse.

As well as purchasing products online, Customer Access
allows clients to access their own complete portfolio of Clarica products. This includes
all insurance and savings products, as well as pension plan balances and group insurance
benefits. This allows self-service anytime, through a single ID and password. For
customers, the benefits are in convenience and speed of access to their information.

Clarica is testing another e-business initiative with
chatelaine.com, the English online arm of Chatelaine, a leading Canadian women’s
magazine. Clarica has created a microsite, called Clarity for Women that resides within
chatelaine.com. The site provides visitors with the ability to participate in an online
talk forum where Clarica female agents will answer questions about investments and
insurance; learn more about building a solid financial plan and order or download free
interactive software tools that take the guesswork out of planning for major life events,
like having a baby, raising a toddler, buying a home, planning a wedding or retiring.

Clarica (CLI: TSE) has provided insurance and investment
solutions to Canadians for 130 years. As well as individual and group insurance, Clarica
also provides a full range of savings and retirement products. In Canada, Clarica serves
more than 3.3 million customers through 8,000 staff, agents, financial planners and group
representatives who operate out of 90 offices throughout the country. In the United
States, Clarica operates from two mid-western locations to serve 225,000 policyholders.

For more information, contact:

Christine E. Gerritse
Next 21 National Program Manager
Tel: (416) 947-7763
[email protected]