If it is just for insurance, I would be asking them exactly what they want. From what I understand, they are often just looking for an electrician to inspect the place and give an assessment on safety and electrical integrity. If the home is old (which if it contains aluminium wire it is reasonably old) that does not mean that it can't pass an insurance inspection. Aluminium is a material that can have POSSIBLE problems if not installed/maintained properly, but by no means does that mean it is unsafe if used properly. Insurance companies are there to provide insurance. I'm confident that they understand that they should not be requiring all homes with aluminium wiring to gut their homes and incur tens of thousands if not hundreds of thousands in renovation costs. They charge a premium based on the risk that is there, and while no material is perfect (copper has it's issues too) the risk is likely still relatively low if it has been inspected by a professional and deemed safe. Nothing in this world is perfectly safe, but then I suppose we would never need insurance then. Consult a professional and get their opinion, and be sure to push for fair answers or get a second opinion if your costs are going to be excessive. Knob and tube wiring, is a completely different story. I know of people that own homes in this city that are over 100 years old, and it is routine that insurance companies will charge a higher fee due to their age, but homeowners are often advised that if an electrician does a thorough inspection and reports it back to their insurance provider, that insurance rates can come down to something more reasonable. Definitely can't hurt, so long as the person doing the work is providing a fair assessment of the electrical system. Even if the insurance company assesses a slightly higher rate for aluminium wire, paying that rate may be much, much less than a complete gut-out over the long term. Make sure your family is safe, and you are good to go.
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