I don't think that Word 2013 is able to import .jpg files as an object so I found that if you use Object to create a Package and then insert the .jpg into the Package, it will work. Here are the steps:
1. Insert Tab > Test Group > Click on 'Object'
2. In Object dialog, click the 'Create New' tab
3. Scroll down to Package (I always used the 1st Package label) and highlite it
4. Click the box for' Display as icon'
5. Click the 'Change Icon...' button
6. In Change Icon dialog click the 'Browse' button and find your .jpg picture and double click on it.
7. Change Caption title "Package" to the title you want
8. Click the 'OK' button
9. In Object dialog click the 'OK' button
10. A Create Package dialog will appear, click the 'Browse' button and the folder holding your .jpg should appear. If not, search for your .jpg and double click on your .jpg document.
11. Click the 'Next' button
12. Click the 'Finish' button
Your Word document should have your icon inserted into it and if you double click the icon your picture will appear.
Fyi... This procedure worked for me and my colleagues and this issue only seems to appear in Word 2013, not in Excel 2013.