The correct answer is: Uncertainty can be converted to risk by taking out insurance.

Risk involves situations or events which may or may not occur, but whose probability of occurrence can be calculated statistically and the frequency of their occurrence predicted from past records. This is true.

Insurance deals with risk. This is true because risk involves situations or events which may or may not occur, but whose probability of occurrence can be calculated statistically and the frequency of their occurrence predicted from past records.

It is true to say that uncertain events are those whose outcome cannot be predicted with statistical confidence.

Taking out insurance does not change the nature of uncertainty. It may be that insurance is not available for uncertain events.