Wrap in a lofty towel, then foil on top of that.
Fiberglass insulation is among the best, if handled right. Or an old wetsuit.
You really need to get closer to 210-212°F to call it a rolling boil, at sea level. How big of a volume is that right now?
Did you check the specs of that stove? Wattage for each burner? If they're 1000-1500W it's not going to be enough for 2 gallons. How large is that pot? material? If really large for the volume you boil, there's a lot of heat loss.
I never had problems with DMS when I had the lid on half way. As long as the wort temp is 210-212 and a good boil off takes place it seems to work fine.
How old is the stove/burner? The burner could be getting weak, and a new burner may help.