No it's not necessary at all. It's a diagnostic tool that Verizon techs can use to troubleshoot connection problems on your line.
IP Insight is a Quality of Service and /or diagnostic package - but it's not used by VOL at this time - there's no back-end companion for tech support or NOC to use to access it...
It does send "phone home" data used to check latency and network traffic occasionally, but like any other features that it contains are unused or not implemented.

FAQ by kadar