If one observes well, insulation is mostly present where conduction is needed. The two processes are deeply coupled that for one to become possible in the human sense the other needs to be used. Because the process of conduction requires large amounts of electricity or heat to be transferred, it makes human contact nearly impossible without the use of insulators. And since electricity and heat need to be used in many aspects of living, insulation is badly needed. In areas where electricity and heat are studied, insulated materials are of prime importance. In fact, before science can come up with new ideas related to heat and electricity, scientists need to develop an insulated material that will be able to withstand high temperature and electricity first. Failure to do so will be a high risk for humans.
Imagine if you need to fix your circuit board because of a short circuit that makes the flow of electricity impossible. You will have to touch the wires to connect them where they have severed. You cannot close the main switch because it is not coated with paint and insulated material. You will have to suffer the electric shock until you are able to fix the circuit. Or imagine yourself cooking. The hot water is coming to a boil and you need to mix the ingredients. You have to hold the pan directly on the conducted surface and will have to suffer burns and injuries because the high temperature will damage your sensitive skin. These activities are all made possible by insulation.