Don't lose anything on death? The mission is lost and you have to pay insurance, how is that not losing anything?
Trying to compare with trading is stupid, if you want to get a trader and do a trade run you can guarantee a big profit with virtually no risk. Also, it's completely intuitive that your cargo is lost if you get blown up.
Bounty hunting makes money much slower and the bounties you've already got should be kept. If you want to compare it to trading, it's like being blown up and not just losing your current cargo but losing all profits from previous runs that session.
There is only one consequence of the current mechanic - it encourages you to stop what you're doing and go claim your bounty.
/sigh
Trading can be very risky.
In larger ships you can end up spending millions on some commodities. You get blown up? That's millions gone PLUS the insurance for the ship, which is a hell of a lot more than a ship that you use for bounty hunting.
Trick is... don't die. If you are being outnumbered, or losing a fight, run away before it happens.
It's not going to change, so there is no point even arguing the matter. It is very well balanced and fair right now.
And this is coming from a bounty hunter, it's my career choice and I am happy with the risk associated with it.
Paying insurance is not a risk for bounty hunting. It's the death penalty for everyone, regardless of what you are doing. So for bounty hunters not to have any other risks, would basically be the only viable choice for risk free credits. There has always got to be risks... this is of course, Elite Dangerous. Dangerous is there for a reason.