Yes it will help! Insulin sensitivity is determined by a number of factors. One of these is weight - generally fatter people have higher insulin resistance, and as many type 2's are overweight, exercise is recommended in order to reduce weight and therefore decrease their insulin resistance. However, exercise also causes increased insulin sensitivity for a time period after the exercise is finished - it varies depending on your body and the exercise you do, but the effects can last up to 24 hours. This is why people on insulin are advised to watch their blood sugars closely after exercise. From my personal experience as a type 1 diabetic with BMI 19.5, exercise definitely affects my insulin sensitivity even though I have maintained an almost constant weight.