The problem with absorbent insulation (probably most types that are designated as thermally insulating) is that they do what they say on the tin - they trap pockets of air in order to do their job. The problem with using them in a damp environment is that those pockets of air contain a lot of moisture and over time it will condense and form droplets of water, which isn't going to go anywhere except pool in cavities.
Really, the only way to use this would be to seal it into panel voids - i.e. using some sort of plastic membrane over the top and ensuring that moisture cannot get to it. Or maybe even seal sections of insulation in plastic bags and then use this? If you have a dehumidifier, you could stick the insulation in a room for a week with it to ensure it is even more moisture-free before sealing it up.
Just my two pence worth.