This is insulation so the hot end heats up quicker but also for safety reasons so if you touch it with your finger you won't burn your finger. The DIY Rapman had a hotend you needed to build yourself which had no such silicone but used fire proof cement and a silicone sleeve instead. The cement for insulation, the sleeve for protection (I guess):
As long as your hot end heats up well I wouldn't bother to much with it. If it becomes a problem you could also use some heat proof insulation like ceramic tape and wrap it around with some Kapton tape in a similar way as the early Makerbot hot end on only kapton if the silicone is still intact but coming off.