As I've posted several times before on here Joe, you cannot rely on the info. on the London embassy website. The website is a mess because, with typical Thai efficiency, they seem to add new requirements without removing the old requirements. The only way to get accurate up to date visa info. is to email them;
[email protected], and they do reply quite quickly these days.
I have assisted a couple of friends to get this visa through the dreaded Thai evisa website this summer in the UK and one friend has just arrived in Thailand 14/11 using the 1 year ME O visa. I just checked with him and he obtained it on 10/10. So I know that there is no insurance requirement at the moment. But, again, I advise anyone applying for any visa from the UK to email them to double check the requirements before applying.
Also for anyone applying for a visa and being asked by the evisa website to upload irrelevant documents or documents no longer required, such as insurance, you just need to upload a blank sheet of paper with N/A written on it.