Exactly.
Your allies always get a perfect ejection when their skell gets destroyed so their insurance never goes down, but regardless, every time it does get destroyed you do have to go to the barracks hanger console and it'll tell you that insurance has replaced the skell.
For you, if you get a perfect on the ejection prompt when your skell is destroyed your skell will also get replaced for free and it'll still say insurance replaced it, but, if you fail that ejection prompt, then, and only then will your insurance go down, but even then, so long as you have insurance left insurance is still going to replace your skell.
Basically, it's always going to tell you insurance has replaced your skell when your skell is replaced, once you don't have any insurance left, well, then you won't get that message anymore! Instead it'll ask if you want to abandon it or pay the salvage fee.