For pipe heat trace application it is required to insulate the pipe. the insulation required for two main reasons:
Physical protection for the heat trace cable.
Minimize the pipe heat loss keeping the pipe warm and save energy, having the insulation it will minimize the heat loss and reduce the needed time for the heat trace to be ON.
Insulation size and type selection is usually done by Canstal engineering team.
Picture below showing recent pipe insulation for industrial fuel skids in Toronto