Not necessarily the wires as you see, but the fact that water can get into the motor case, where that insulation at some point disappears so you effectively have stripped wires if there's not any water proofing between the grommet and the motor case (which usually there isn't because... cost *shrug*)Without measuring, you should not assume those wires are actually causing current leakage.
The inner insulation can work just fine by itself.
Of course - it is bad - and it should be replaced.
But where are the wrasses gonna sleep ?