Exercise is an effective way to increase insulin sensitivity. 

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Diabetes is caused by insulin resistance. Insulin is a hormone that allows cells (like muscle cells) to take up blood sugar and use it for energy. With insulin resistance, the cells have built up a tolerance to insulin. Insulin is still released into the blood when there is high blood sugar, but it takes much higher amounts for it to trigger the cells in the body to take up the sugar. This is why people with diabetes have high blood sugar.

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Exercise makes muscle cells more sensitive to insulin. So, muscles will take up more sugar during and after exercise. Also, muscle cells will begin to take up sugar when contracting with or without insulin.