I doubt they will be able to claim on insurance unless the policy specifically covers s situation where you lose your job and as a result can't afford to pay the balance.
You could politely ask the travel company to refund you but you have no rights and may struggle to contact them. At the moment even people (like me) who had paid in full for a package holiday (should have been back now, all tanned) , and had the holiday cancelled by the provider and been promised a refund, are finding the companies are finding ways of avoiding paying- simply by turning off their phones and ignoring letters.