Taking out insurance in relation to risk management is called what?

Risk transference is a negative risk response strategy that shifts the impact of a risk to a third party, usually in exchange for a fee or premium. Insurance is the most common example - the project transfers the financial consequences of a risk event to the insurer, though the risk itself is not eliminated.

Avoidance involves changing the project plan to eliminate the risk or protect the objectives from its impact - insurance does not eliminate the risk event.

Exploiting (not 'exploring') is a positive risk strategy used to ensure an opportunity occurs - it does not apply to insuring against threats.

Mitigation reduces the probability or impact of a risk event - insurance does not reduce likelihood or impact, it shifts the financial burden.