There are several medical conditions that here in the UK the driver is legally obliged to inform the DVLA of their condition and medications.
Any form of medication that can lower Blood Glucose levels and induce a potential Hypo means that the driver is legally obliged to tell the DVLA of their condition. It dosen't matter what type of diabetes the individual has (It applies equally to both Type 1.Type 2 or whatever other Type) the criteria is if the medication can induce a potential Hypo.
In such cases the DVLA will often ask for a Doctors approval as to the individualy chances and history over recent months/years as to wheter they have had, or are likely to experience a Hypo.
Their licence is then either approved with basic limitations, or issued for a set period of time.
It remains with the individual to always ensure that prior to actually driving, they ensure that their Blood Glucose level is sufficiently high so as to reduce the chance of them going Hypo whilst driving'
The driver should take appropriate action to preven a Hypo amd cary Glucose Medications so that in the event of an unforseen Hypo occuring,, there is a remedy readily availabe to hand, together with a means of testing.
As for vehicle insurance, many insurers simply aren't that bothered in adjusting or ammending the terms of an individuals insurance policy and often leave things as they currently are. But it is always best to inform your Insurance Company that you have diabetes, and even if they don't seem to bother by knowing this, to still get them to acknoledge IN WRITING that you have informed them.