What needs to happen is that every gun is tracked from manufacture to sale.
Read Adjusted Knowledge's post above. This is already done, per federal law.
Also, I have no problem with requiring a gun owner to have liability insurance, but don't expect it to cut down much on gun ownership. I have a one million dollar umbrella liability policy that costs twelve bucks a month.
While we're at it, the "gun show loophole" doesn't exist. If you are in the business of selling guns, you have to do the federal paperwork no matter where the sale takes place. If you are only conducting "casual" sales you don't have to file the paperwork no matter where you are. The obvious solution to this is to require that everybody file a report of sale.