I have been debating the use of insulation on a flexible liner and I have received mixed opinions from some people and the sales reps. It seems that insulation is required from most insurance companies to maintain safe clearances rather than stack temp and creosote- although stack temps and minimizing creosote formation is important to maintaining a safe chimney and reducing a hazard. I do know that an item MUST be installed in accordance with the manufacturer’s installation instructions to maintain the item's listings and codes. From what I have been reading recently, the insulation is required in masonry non-lined chimneys and lined chimney’s (no cracks) if the chimney has 4 inches or less thick masonry and contacts a combustible material. So, a properly code compliant chimney, with no cracks and more than 4 inches of masonry is all right to use without insulation. The insulation provides the 1" clearance and zero rating to the 4 inch or less masonry in case the SS liner is in contact with the masonry. Duraflex has a 1 inch spacer clamp (assumed to be used with Thermix pour in insulation) to provide a 1 inch spacing. The clamps are placed every 5 feet of length. One article says that most pour-in insulation jobs are not performed correctly, and make a deteriorated liner very difficult to remove. http://www.chimneys.com/articles/listed-chimney-liner-insulation-that-doesnt-work