Carl,
I use insignias printed on my printer from the computer. Reduce the insignia on the computer, then print. Use fairly good paper, but not to thick. Some use decals on lead sheet to show a thickness for the insignia patch. The paper replaces that. I use White paper glue to attach. Be sure to paint the edges of the paper. I then spray the figure with Dull coat. I have used this with many 1/9 busts without any of them peeling off.
Nick