Clarica launches online sale of critical illness insurance

Waterloo, Ontario – – October 10, 2001 – – Clarica announced today
that Canadian customers can now purchase Basic Critical Illness Term Insurance online at, as well as through
Clarica’s agents. A unique feature of Clarica’s online offering is that the
entire sales process can be completed electronically and includes immediate online
approval, providing choice and convenience for customers.

Barry J. Triller, Executive Vice-President, Canadian
Customers, said “all steps in the process, including a request for a premium
quotation and application and underwriting are completed online using credit card and
automatic chequing withdrawal options, electronic signature and simplified underwriting
approval.” He noted that this new offering strengthens Clarica’s leadership
position in the critical illness insurance market in Canada and in providing retail health
insurance products via the Internet.

Triller said that demand for critical illness insurance has
increased dramatically in recent years as Canadians seek to ensure that they will be
provided for “if something happens.” Statistics available from Statistics
Canada, the Canadian Cancer Society and the Heart and Stroke Foundation reveal that one in
three Canadians will develop cancer during their lifetime and one in four is estimated to
have a heart condition, a blood vessel disease, or a stroke related illness. However, more
Canadians than ever are surviving many of these life-altering illnesses. Statistics also
point out that the cancer survival rate has almost doubled since 1970, heart and stroke
related deaths have declined by some 35 per cent in the past 10 years and 75 per cent of
stroke victims will survive the initial event, but 60 per cent will be left with a disability.

Triller said that Clarica’s online Basic Critical
Illness Term Insurance will be attractive to the 25-40 age group and covers the four
critical illnesses with the highest incidence rates; cancer, stroke, heart attack and
coronary disease. These four illnesses account for more than 80 per cent of all Critical
Illness claims. The standard version covers up to 18 illnesses. The basic online version
offers coverage of $25,000, $50,000 and $75,000. Issue age is 21 to 55 years, term is 10
years, guaranteed renewable, and in force age is up to 75 years old.

Clarica’s Basic Critical Illness Term Insurance plan
provides lump sum cash benefit, payable on the first diagnosis of one of the covered
illnesses. Triller said that while survival rates are increasing, recovery take months,
meaning a drop or loss of income and related out-of-pocket expenses. The critical illness
cash benefit allows the money to be spent any way the claimant chooses. It can be used to
bridge the gap between government and personal health care plans, alternative medicine,
therapy, replace lost income or renovate a home to accommodate special needs.

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 U. S, Clarica
operates from two mid-western locations to serve 225,000 policyholders.

For more information, contact:

Nicholas Thomas
Media Relations Manager
Tel: (519) 888-3160
[email protected]
Pierre Saulnier
Director of Public Affairs, Quebec
Tel: (514) 282-6114
[email protected]