Current Values Vs Transfer Values......
Might be one of two reasons
1) The charges in the scheme are effectively front loaded in that if you transfer the insurance company will take out future charges it would have deducted if the policy had run the term. It ensures that after the insurance company which has paid commission and had set up charges get out clean should you transfer out.
This type of policy is far less common now than they were in the past as the mechanics are not that transparent to the policy holder.
2) If you have invested in a with profits fund there may be whats known as a market value adjustment which is supposed to ensure that no one policyholder takes more than his/her fair share of the fund when times are bad. This creates a difference between the current value and transfer value.
Hope you are somewhat the wiser