If your baby's insect bite is still swollen after a week and there are red circles appearing around it, it is important to monitor the situation closely. If the swelling continues to increase or if the redness spreads beyond a certain boundary, it is recommended to seek medical advice. You can continue applying moisturizing cream and using a cold compress to help alleviate any discomfort. It's always best to consult a healthcare professional if you have any concerns about your child's health.