The New Zealand government has set out an initial package of support for communities affected by recent severe weather across the North Island, alongside funding streams that are expected to intersect with insurance and recovery activity. On Jan. 27, Prime Minister Christopher Luxon confirmed the first phase of central government assistance for areas hit by flooding and landslips, including Mount Maunganui, Welcome Bay, Warkworth, Northland, Coromandel, Bay of Plenty, and Tairāwhiti. “The impact has been devastating for many people, particularly those who have tragically lost loved ones at Mount Maunganui, Welcome Bay, and Warkworth,” Luxon said.
Luxon said about 500 people across the North Island had been displaced, with the figure subject to change as assessments continue. The Temporary Accommodation Service has been activated to help affected residents find short-term housing. He said the government was working to maintain access to communities isolated by slips and road damage. State Highway 35 on the East Coast and State Highway 25 in the Coromandel have both been damaged, and KiwiRail is assessing its lines for disruption to rail services. Health NZ is monitoring effects on health facilities and providing support for people experiencing mental distress. The Ministry of Social Development is engaging with those who require financial assistance.
To address immediate needs in affected regions, the government has made $1.2 million available through Mayoral Relief Funds. This sits alongside the regular annual government contribution already made to those funds. An additional $1 million has been allocated to reimburse marae that provided welfare support during the event and to enable them to restock essential items. “Marae have been exceptional in the way they have stepped up to help their communities, providing shelter, food, and care to people in need,” Luxon said.
Māori Development Minister Tama Potaka also announced a $1 million Marae Emergency Response Fund for marae across the upper North Island that supported communities between Jan. 20 and 23, when flooding and landslips affected Northland, Coromandel, Bay of Plenty, and Tairāwhiti. “At least 20 marae across five regions activated to support their communities, providing kai, shelter, power, and essential support to anyone who needed it. This fund ensures marae are not left carrying the costs of that mahi allowing them to replenish what was used, recover from the immediate response, and continue to build their resilience for future events,” Potaka said. The new allocation has been added to the Māori Development Fund, allowing Te Puni Kōkiri to provide one-off reimbursement grants to marae and related organisations. Eligible costs include food, accommodation, utilities, and other welfare-related expenses incurred while supporting evacuees, stranded travellers, and residents unable to leave their areas.
Officials highlighted several existing funding mechanisms that are expected to support recovery and sit alongside insurance payouts and local authority responses. The Natural Hazards Commission (NHC) has up to $700 million available for claims arising from this event. Waka Kotahi NZ Transport Agency has more than $700 million set aside for emergency work on local roads and state highways in the 2024–2027 National Land Transport Fund period. The Ministry for the Environment has $7.2 million to assist local authorities with emergency waste, and Ministry for Primary Industries Rural Support Trusts have funding to assist rural communities.
Emergency Management and Recovery Minister Mark Mitchell said further measures could be considered once damage assessments are more complete. “While this event is not on the scale of Cyclone Gabrielle in terms of the number of people affected, for those who have been affected, the impact is significant and we will make sure they’re properly supported to get back on their feet,” Mitchell said. Luxon has appointed Chris Penk as associate minister for emergency management and recovery to support cross-agency coordination. Penk has also been asked to provide advice on the potential scope of a government inquiry into the events at the Mount Maunganui Beachside Holiday Park. “I believe there is a strong case for an independent government inquiry. Establishing the facts is not only what the families of those who lost their lives deserve, but also important to help ensure lessons are learned to prevent similar tragedies in future,” Luxon said.
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has warned that policyholders should expect delays as insurers process weather-related claims from Northland, Tairāwhiti Gisborne, Coromandel, and Bay of Plenty. Insurance & Financial Services Ombudsman Karen Stevens said the period would be “stressful and confusing” for many customers and that some waiting time was likely while insurers assess the overall impact of the event. “Contacting insurers online is the quickest way to make a claim, helping people avoid long phone queues, which are common after major weather events. Insurers will prioritise the most urgent and cases first, such as those with unliveable homes or those in vulnerable situations,” Stevens said.
Stevens linked potential delays to the volume of claims, restricted access for assessors and the need for specialist trades. Referring to Cyclone Gabrielle and the 2023 Auckland floods, she said insurers are applying lessons from those events, including revised triage processes and clearer communication about expected timeframes. “Under the Fair Insurance Code, insurers must give clear information about claim progress, usually with updates every 20 business days or at another agreed interval,” she said. She encouraged policyholders in vulnerable circumstances, such as serious illness, disability, or significant financial strain, to inform their insurers so that additional support can be put in place. Stevens also pointed to free, independent assistance from the IFSO Scheme and to the New Zealand Claims Resolution Service (NZCRS) for homeowners with natural disaster-related claims.
Insurers are reporting early claim numbers and implementing their major-event procedures as the weather system’s effects become clearer. Mutual insurer MAS has begun contacting members it has identified as potentially affected, including those who were heavily impacted by the 2023 Auckland Anniversary flooding. As at its latest update, the insurer had received 58 claims linked to the current event. About 59% relate to home policies; 27% to contents; 7% to cars, boats, or caravans; and 7% to business property. MAS expects additional claims as members return to holiday homes and other properties. MAS is asking members with non-urgent issues to lodge claims online, reserving phone lines for urgent situations and emergency repairs. The insurer has advised customers to record damage with photos and video, prepare lists of damaged items (including spoiled food and other perishables), keep samples of removed floor coverings where possible, and have policy details and proof of ownership available.
IAG New Zealand’s AMI, State, and NZI brands have also reported early claim figures. As of 9am on Jan. 20, they had received about 80 claims from Northland related to heavy rain, spanning home, contents, motor, boat, and commercial policies. AMI, State, and NZI are encouraging customers to submit claims online once it is safe to inspect damage. NZI policyholders are being directed to contact their brokers first. The brands are also directing customers to their disaster claims hubs for information on emergency repairs, temporary accommodation, health and safety considerations, and claims procedures. For insurance professionals, the combination of government recovery funding, marae reimbursement, ombudsman guidance, and insurers’ major-event activation will influence claim patterns, operational workloads, and recovery planning across the affected North Island regions.
