Updates in Sql server result in ghosted rows - i.e. Sql crosses one row out and puts a new one in. The crossed out row is deleted later.
Both inserts and updates can cause page-splits in this way, they both effectively 'add' data, it's just that updates flag the old stuff out first.
On top of this updates need to look up the row first, which for lots of data can take longer than the update.
Inserts will just about always be quicker, especially if they are either in order or if the underlying table doesn't have a clustered index.
When inserting larger amounts of data into a table look at the current indexes - they can take a while to change and build. Adding values in the middle of an index is always slower.
You can think of it like appending to an address book: Mr Z can just be added to the last page, while you'll have to find space in the middle for Mr M.
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