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The insulation is to keep the condenser (liquid) line sweating in finished areas and also keep the coldest liquid going to the evaporator coil. The evaporator (hot gas) line is left uninsulated to help flash off heat before entering the compressor to start the cycle anew. What you have is normal and nothing would be gained from insulation.
I think you have the lines reversed. The liquid line to the evaporator gets hot. The returning vapor line is cold.Keeping the vapor line cold, keeps the pressure at the compressor a bit lower. I'm not sure there is anything to be gained by insulating that short bit of pipe, in a way that would hold up to the heat, rain, wind and vibration.
Both the Yuengling and the Vodka on the rocks w/ a squeeze of lime were cold