It does look as though a little bit of melting on the back side...
This might be part of your intermittent starting, because if the red wire doesn't make good contact your bike won't start, you may still have power from the battery and everything will light up but when you press the starter nada You need to replace that. My dealer told me that connector is available, or you can replace it with individual spade connectors. Take a picture of the connector for reference where the wires go to in the connector.(it can be easy to mix them up and you can short out a diode in the clutch switch circuit which will illuminate the neutral light everytime you pull in the clutch. green wire red tracer).
You may have to peel back the tape that holds the four wires to the connector. It is possible the corrosion has wicked up the wire. If any of the wire is black you need to cut the wire back till it is nice and shiny. Then splice and solder a new piece of wire to extend it so that the connector will reach the relay. (I didn't heed the advice from other members here on the forum and I had to fix this twice} Before you reconnect the wires to the starter relay put a good amount of dielectric grease on the relay terminals. This will prevent water that collects in the base of the connector from corroding the wires. It is the thicker red wire that is the main culprit.
There's another connector that causes grief, a little harder to get at (Above the starter relay in the frame), but it has three yellow wires from the alternator. It has been advised to take the connector out and solder each wire to the corresponding wire.
Doing these fixes will make the charging system work better and easier and the wires won't heat up and melt due to poor connections.
If you aren't running too many accessories the 28 amp alternator is capable, however, if you plan to run driving lights, heated vest and grips etc. you may want to consider upgrading the 28 amp alternator and retrofitting a 40 amp unit.
If you're so inclined there's a red wire bypass to consider.
This may seem overwhelming and it was to me when I had to face the issue. In the end I found it easy to deal with the three yellow wires and the red connector. I'm holding off on the alternator fix and will do the red wire bypass later.
All instructions on how to do this will be in the 1100 Alternator forum.
cheers
Robert