I do not think the insurance screen proposal will make a difference - the structure of the game is PvE with occasional co-operative play, and occasional forced PvP - the latter can be reduced by mode switching or where you meet your objectives in the galaxy, but rewards tend to reduce as risk reduces. This has caused an illogical fear of PvP in some - and PvP as an end in itself for others. Neither seem healthy positions to me. I play in open almost exclusively but my home area is on the Federation/Frontier border and is very quiet. ICo-op I do with a few friends around this quiet ares and is adhoc, I travelled 150Ly to get involved in some PvP last week.
In terms of mechanics.....
There are only 4 reasons for PvP - PvP is the objective in itself, piracy (I am assuming PvE piracy is still rubbish. not tried it), bounty hunting, and PP undermining (some of the powers have other reasons for pew-pew). The problem is. all are forced encounters where one side does not actually want to be in the interaction. Given the forced nature of the interaction, they are typically one sided - all are much less risky from the side initiating the engagement if they are performed in a wing - and the rewards shared. I would like to see more tools for the bounty hunter, to control those pesky pirates - but not sure it would help, Haz Res is a much better income per hour if slightly grindy, why put more effort in, with higher risk for a poorer reward?
I believe regardless of numbers on the insurance screen the above is the reason why a lot of players are put off of playing in open. It is sort of backed up by some of the points raised in open verses solo debates - "I do not want to be someone else's content" (I do not want to play the victim role in our interaction), "Open is full of gankers/greivers etc" (I am forced into interactions I do not want).
These forums really do not help. One persons bad day, which may be a really their first, or completely non-typical of their normal experience, easy to solve by going somewhere else for a while is reported - the word "griefer" is used often with "interfering in my game", and some come back with "carebear". At least this thread is trying to move beyond this! The threads do set up a fear for other developing players and depending on their current objectives - it can be so much less risky in solo/Morbius.
I think reasons for more PvP interactions, where both parties are aware there is a risk of pew-pew and there is not clear initiator and victim roles, would make PvP encounters more fun for all - which would go a long way to taking the "fear" out of PvP encounters.
For me and YMMV, Khaka - part of the Lough CGs was great fun - I got pretty good at running guns against 2-3 FDL and Clippers in a Type-6 - but there was a lot of death as I learnt

Recently Anlave has peaked my interest because of its historic role in the universe, and the arrival of an Independent not Federation faction to control it - Contrail seem like a nice bunch to compete against - every time I go down there I know there is a risk I will lose my ship, may actually have to shoot someone, but there will be some fun banter before and after. Curiously opposing Contrail is not that popular - so its probably the "canonn fanboy" in me that makes me interested - it is though an example of gameplay generated by players themselves that is not initiator/victim based, so is very rare. Something similar is happening for Hutton as well in their conflict zones.
So I have found 2 things in a year that encourage me to participate in PvP - one ongoing albeit, that needs to change to get more people in open in my opinion. I think tweaking the insurance screen is just tinkering at the edges - and will just lead to demands for cargo insurance. On the plus side, I think the introduction of the player minor factions has and will generate more situations of conflict in objectives and non-forced PvP.
Simon