'policyholder' originates from the combination of 'policy' and 'holder', where 'policy' refers to an insurance contract and 'holder' means someone who possesses something.

'policyholder' evolved from the Middle English word 'policie' meaning 'contract' and 'holder' from Old English 'healdan' meaning 'to hold'.

Initially, it meant 'one who holds a policy', and this meaning has remained consistent over time.