Indirect characterization is when details about the character is revealed through a characters actions, dialogue, appearance, etc. Direct Characterization is when details are directly stated in the passage.
Ex. indirect; When Lily saw the sign advertising a clown show, she shuddered and the hairs on her neck stood up.
Ex. Direct; "I'm like, super uber scared of clowns," Lily shuddered.
"of insects" is an adjective phrase because it's a prepositional phrase that acts as an adjective. It modifies the word "group"; In other words, "of insects" is used to describe the word "group".