I still believe that the in-game bounty system is fundamentally flawed. (even with this update)
In real life, bounties were issued to apprehend or kill criminals and were only payed out when the target war dead or incarcerated. Both results were a significant and long-time punishment.
But the in-game insurance mechanics means that heaving even a multi-million credit bounty brings the harshest punishment of one-time ship destruction/re-buy.
No long time punishment, no scaling of punishment by bounty.
general implications of the current bounty system:
1.Bounty is not locked to modes -> easy to rack up bounties in solo without the possibility of player bounty hunting, then going group/open in a sidewinder for "exploits"
2.Bounty is not locked to ships -> If you get a multi-million cr bounty in an Anaconda, no problem. Just jump in to a sidewinder and get killed by someone "exploit" and you dont need to pay anything for it.
3.Bounty Hunter receives full bounty no matter the consequence/damage caused to the criminal -> Bounty has no meaning currently in game, factions issue millions/ billions of credits as bounties. and bounty-hunters can get it, by blowing up a stock sidewinder. Causing no setback for the criminal whatsoever.
These points are intertwined and limiting Bounties to 1M cr does not solve any of them.
The easiest and simplest solution would be to reward the bounty-hunter only with a maximum equaling the damage caused to the criminal i.e. Bounty amount payed out == Insurance cost payed.
Every profession in game has risks, all but the psychotic murderers.
If you cant pay the price, dont do the crime.