This paper tests implications of full consumption insurance. With observations on consumption and income in 2 years from the China Family Panel Studies, the results for the two specifications (exponential utility and power utility) are consistent with full consumption insurance. Individual consumption responds to aggregate risk but not to idiosyncratic risk. The changes in household income are not significant to consumption. Under consideration of financial development, the results show that, financial development has no significant effect on individual consumption respond to aggregate risk, while it has a significant effect on the contribution of income to the consumption for one specification (power utility).