I'm not sure what you guys did, but insurgencies seem much better now. They're establishing their HQ's very efficiently and can become busy-bees doing evil stuff when given the space to do so.
Good job.
I do want to point out that, I tend to use the option "none" for pre-placed installations. This used to mean in most missions, with the way I set them up, it could take upwards of an hour for them to start placing installations on their own. Now they get to work right away, which I love. So I guess, if anyone made any before 1.2.7, I'd certainly advise you to take a look because your mission balance will very likely have changed a lot and will probably need an update to retain the original feel.
One odd quirk though. I have 5 or 6 insurgencies going right now. In only one, I'm having an odd problem where the mission will work fine and the OPCOM will place installations nicely. However, if I exit back to the editor and press play again, the OPCOM commander will not only never place any installations (after several hours. When it's "working" normally they begin after about 15 minutes), but both sides eventually stop fighting each other.
Again, I've only seen this occur in one mission (sporadically) and I have spent a good 15-20 hours looking at this since the update without any problems on most of my other missions.
I'll try deleting and replacing some modules and keep an eye on that. If it continues I'll post the rpt file.