I've never used it for bug bites, but definitely for burns, and when my (reactive, rosacea) skin is at its worst that is the only thing I wash my face with. Honey is great!
I would think that it might be easier to use a pomade type thing (I have one made locally that I use for cuts and burns, beeswax, honey, propolis, and pennyroyal, if I'm not mistaken) to keep it on the skin long
enough to have an effect, but I don't think you can go wrong with honey.