If the outlet of Insert simply exhausted up the chimney, it was installed as designed to use the existing flue. A liner would require an adapter called a "Boot" that would be mounted on the Insert and connects to a stainless steel pipe, like a tube that goes all the way up the chimney. This keeps the flue size smaller and insulation can be added around liner to keep it hotter inside. This increases draft and decreases creosote build up. When invented, they were made to easily slide into and use existing hearth and chimney. So there was no boot made to fit the top. They are available made of cast iron, pictured below, thick sheet metal, or stainless.
View attachment 140157 The integral original damper and rod goes under the boot, so the stainless type is easier to notch for damper rod.
If the Insert is slid into hearth without an airtight connection to flue, the heated flue will not only draw air through the fire (through the Insert air intakes) but it will allow air leakage
around the Insert. This is the cooler indoor air you don't want leaking up the chimney cooling the flue, reducing draft, and causing creosote build up due to cooler flue temp. So without a boot and liner, the faceplate seal is important, which in your case would not be flat against the hearth, so the faceplate needs to be sealed with spacers to prevent air leakage around the Insert.
Bottom line is;
ALL air must go THROUGH Insert and up chimney. Not around it. Direct connection of liner to Insert top insures this.
Also without a liner, the Insert needs to be removed for cleaning creosote that falls down flue during cleaning. With a liner, debris falls into firebox and is easily removed.