Amber is crystallized tree sap, which as a material is very high in sugar. This affects osmosis, and makes it very hard for bacteria to live in, as water wants to flow into the sap and out of the things trapped in the amber. No bacteria, no decay.
Sorta. There’s still degradation, the molecules making up the insect might experience issues and be malformed due to exposure to stuff like UV light or oxygen, so perfectly preserved is a bit of a stretch.
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