Here's a proof sketch, perhaps from what was on the napkins so long ago.
We define BG to be the type of left G-torsors, pointed by the trivial G-torsor provided
by left multiplication on the underlying set of G, with the proof of nonemptiness provided
by the unit element of G. First one proves, using the structure
identity principle or using the Rezk completion theorem, that Loops BG <~> G.
Now we let Z be the group of integers and define Circle to be BZ. We let Loop be
the loop at the basepoint of Circle provided by univalence applied to the translation
by +1 (or by -1).
Let Y be a type, let y:Y, and let l:y=y. We want a map r:Circle->Y.
Now consider, for each T:Circle, the type GH(T) whose elements consist of three
things: a point y':Y; for each t:T a path p_t : y'=y; and for each t:T an
equation p_t * l = p_(1+t). One proves GH(T) is contractible. Let X be the total
space of GH. It maps by projection on the first factor to Circle by an equivalence,
and by projection on the point y' to Y. Composing the inverse of the first map
with the second map gives the desired map r:Circle->Y.
Here is how you prove GH(T) is contractible. Contractibility is a proposition, T is
nonempty, and nonemptiness of T is the propositional truncation of T, so we may
assume we have t:T, hence that T is the trivial torsor defined above. Now make an
element of GH(T) by taking y' to be y and by taking p_t to be the t-th power of l, thinking of
t as an integer. Now show every pair of elements of GH(T) are equal. Do that
by showing that an element of GH(T) is determined by (y',p_0) -- by induction over nat,
the paths p_n for n>0 are determined, and by induction over nat
again, the paths p_n for n<0 are also determined uniquely. But all pairs of the form
(y',p_0) are equal to each other.
The proof that the resulting map r sends Loop to l is a computation, currently
sort of messy, but the basic idea is that transport along Loop of the element of GH(T) constructed
above substitutes t+1 for t, and thus amounts to composing all the paths p_t with l,
and in particular to composing p_0 with l, so when projecting onto the variable endpoint of
p_0 we see l.