I like to insure shipments over $100 even international ones. Usually, I ship by USPS first class mail for international unless the customer asks for Priority. Here is what I do:
I use ShipRush for USPS, which is a free service to print USPS labels. You can download it here:
http://www.shiprush.com/products/shiprush_usps.shtmlShip Rush offers international First Class mail and you can get delivery confirmation with it. The drawback is you cannot buy the postage with the free version, so I either add stamps or bring it to the Post Office to add the postage.
Now that I have a tracking number from ShipRush, I use
http://shipsurance.com to purchase insurance if over $100. It is less expensive to purchase than USPS insurance and you can insure most international first class parcels as long as there is Delivery Confirmation.
This works for me but if you have a lot of international sales, you might want to use the paid service or Stamps.com which also offers what you are looking for.
As mentioned earlier, tracking is really iffy internationally. But if a customer complains and it does not show delivered, at least you can file a claim for insurance. I have not had to do this yet, though.