IMHO, people are misinterpreting the insurance mechanism.
The point of insurance is not to aid victims of griefing, but to make griefers "work" for it. To force them to "play the game" and earn credits to replace lost ships and equipment, thus leaving less time for griefing.
PS: Mind I'm talkin about griefers and not pirates. Any pirate worth its salt should make enough money for a living.