Replacing three way switches with insteon
This particular situation will involve rewiring the old dead end 3-way.  

The white tied to the blacks needs to be rewired as a neutral.  Currently it is wired as a common (hot).  Then one of the travellers needs to be rewired as a permanent hot.  This will allow your dead end Insteon to be powered up.

The black and red that where tied together is the switch leg.  It ties to the red on the Insteon. The rest should fall into place.

Don't forget to turn off the breaker(s).