The Civil Aviation Authority is handling the investigation.
Bill Sommer, the authority's spokesman, said reports would be obtained from all involved to see if any lessons could be learned.
"It's not a matter of blame and prosecution - we want to know if we can learn lessons from it and reduce the risk of it happening again," he said. "Skydiving accidents are a very rare occurrence."
Neither the Department of Labour nor the New Zealand Parachute Industry Association plans to investigate the incident.
In January 2006 a tourist from Northern Ireland was injured after she was blown off course during a tandem dive with Skydive Taupo. She was treated at Rotorua Hospital for three cracked vertebrae.
In December that same year a man jumping with the Freefall Skydiving Centre in Taupo plummeted into blackberry bushes at Five Mile Point. He was found unconscious in the bushes with a leg injury.
Earlier this year skydiver James Boole suffered extensive injuries, including a broken back, a punctured lung and several broken ribs when he forgot to open his parachute while filming a jump in Russia.
He slammed into the ground after a 1800m freefall. Only the thick covering of snow saved the 31-year-old.
- ROTORUA DAILY POST