Brought some firehoods from screwfix the other day....the instructions said in no circumstances should insulation material be placed over, or around the fire hood..!
The fire hoods are intumescent material, they are to prevent the spread of fire (the hole in the ceiling breaks what would normally be a 1/2 hour fire barrier). They aren't to allow you to cover the lights with insulation, for these you'd need one of the caps made for the purpose or build your own sealed plaster board boxes (taking care to ensure the correct air space around the fitting.
whilst you could get enough heat from a 10w square led to give you a blister they are designed with a big enough heat sink to spread the heat
and off course down lighters dont have 10w leds
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